Avantor Inc (AVTR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 711,500 | 321,100 | 686,500 | 572,600 | 116,600 |
| Total stockholders’ equity | US$ in thousands | 5,956,700 | 5,252,600 | 4,855,400 | 4,197,000 | 2,674,300 |
| ROE | 11.94% | 6.11% | 14.14% | 13.64% | 4.36% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $711,500K ÷ $5,956,700K
= 11.94%
Avantor Inc's return on equity (ROE) has exhibited fluctuations over the period from December 31, 2020, to December 31, 2024. The ROE increased from 4.36% in December 2020 to 13.64% in December 2021, indicating a significant improvement in the company's ability to generate profits from shareholders' equity. This upward trend continued in December 2022 when the ROE rose to 14.14%, reflecting a continued strength in Avantor's financial performance.
However, there was a notable decrease in ROE in December 2023 to 6.11%, which may indicate a temporary decline in the company's profitability relative to its equity. It is essential to investigate the reasons behind this decrease to determine if it represents a one-time event or a more concerning trend.
In December 2024, Avantor's ROE rebounded to 11.94%, showing an improvement compared to the previous year but still below the peak observed in December 2022. Overall, the company's ROE has demonstrated both growth and variability over the analyzed period, suggesting the need for a thorough assessment of Avantor's financial performance and strategic decisions that impact its profitability.
Peer comparison
Dec 31, 2024