Avantor Inc (AVTR)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	321,100	686,500	572,600	116,600	37,800
Total stockholders’ equity	US$ in thousands	5,252,600	4,855,400	4,197,000	2,674,300	2,462,200
ROE		6.11%	14.14%	13.64%	4.36%	1.54%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $321,100K ÷ $5,252,600K
= 6.11%

Avantor Inc's return on equity (ROE) has experienced fluctuations over the past five years, ranging from 1.54% in 2019 to 14.14% in 2022. The ROE in 2023 was 6.11%, reflecting a decrease from the previous year but still higher than the levels seen in 2020 and 2019.

The ROE measures a company's ability to generate profits from its shareholders' equity. A higher ROE indicates better profitability and efficiency in utilizing shareholder funds. Avantor Inc's ROE has shown a positive trend overall, with significant improvements in 2022 and 2021 compared to 2019 and 2020.

The lower ROE in 2020 and 2019 may indicate challenges or inefficiencies in the company's operations during those years. However, the subsequent increase in ROE in 2021 and 2022 suggests that Avantor Inc made improvements in its profitability and efficiency.

It is important for Avantor Inc to continue monitoring and managing its ROE to ensure sustainable growth and value creation for its shareholders. Further analysis of the company's financial performance and factors affecting its ROE would provide more insights into its long-term financial health and prospects.