Avantor Inc (AVTR)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,084,800	630,000	715,600	611,500	696,400	764,900	830,500	1,054,400	1,130,200	1,092,400	1,053,800	1,012,900	972,200	962,800	902,800	814,700	706,800	654,100	620,100	572,600
Total assets	US$ in thousands	12,114,500	12,840,600	12,693,500	12,763,400	12,972,700	12,798,100	13,063,300	13,395,900	13,464,300	13,113,300	13,430,900	13,836,400	13,897,200	12,199,200	11,249,700	9,738,800	9,906,500	9,938,400	9,867,000	9,786,200
Operating ROA		8.95%	4.91%	5.64%	4.79%	5.37%	5.98%	6.36%	7.87%	8.39%	8.33%	7.85%	7.32%	7.00%	7.89%	8.03%	8.37%	7.13%	6.58%	6.28%	5.85%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,084,800K ÷ $12,114,500K
= 8.95%

The operating return on assets (ROA) of Avantor Inc has shown fluctuations over the periods provided. The trend indicates a general increase from March 31, 2020, to December 31, 2021, with a peak of 8.37% in March 31, 2021. However, there was a slight decline in the operating ROA in June and September 2021 before rising again in December 2021.

From March 31, 2022, to June 30, 2022, the operating ROA increased steadily, reaching a high of 8.39% in December 31, 2022. Subsequently, there was a noticeable decline in the operating ROA from March 31, 2023, to December 31, 2024, with the lowest point recorded as 4.79% on March 31, 2024.

It is essential for Avantor Inc to assess the reasons behind the fluctuations in the operating ROA and take necessary actions to improve efficiency and profitability. Monitoring and analyzing this ratio can help the company understand how effectively it is utilizing its assets to generate operating profits.