Avantor Inc (AVTR)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total current assets	US$ in thousands	2,146,600	2,504,700	2,329,200	2,321,100	2,384,900	2,384,800	2,499,100	2,627,300	2,657,900	2,560,100	2,571,500	2,606,300	2,477,200	3,564,600	2,422,700	2,232,000	2,230,900	2,296,800	2,292,300	2,196,600
Total current liabilities	US$ in thousands	2,007,500	1,629,800	1,464,600	1,441,900	1,480,300	1,488,100	1,550,100	1,669,500	1,658,800	1,551,900	1,571,300	1,447,100	1,450,800	1,320,100	1,377,700	1,240,700	1,242,700	1,136,000	1,053,700	1,126,600
Current ratio		1.07	1.54	1.59	1.61	1.61	1.60	1.61	1.57	1.60	1.65	1.64	1.80	1.71	2.70	1.76	1.80	1.80	2.02	2.18	1.95

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,146,600K ÷ $2,007,500K
= 1.07

The current ratio of Avantor Inc has fluctuated over the years, ranging from a low of 1.07 at the end of December 31, 2024, to a high of 2.70 at the end of September 30, 2021. This ratio measures the company's ability to cover its short-term liabilities with its current assets. Generally, a current ratio above 1 indicates that a company has more current assets than current liabilities, which is considered a good sign of financial health.

While the current ratio of Avantor Inc has shown some variability, it has predominantly stayed above the 1 level, indicating that the company has had sufficient current assets to meet its short-term obligations. However, it is important to note that a current ratio that is too high may suggest that the company is not efficiently utilizing its current assets.

Overall, the current ratio trend of Avantor Inc suggests that the company has managed its short-term liquidity position relatively well, but it is essential to continue monitoring this ratio to ensure the company maintains a healthy balance between current assets and liabilities.