Avantor Inc (AVTR)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	360,200	260,000	321,100	364,300	422,900	617,600	686,500	638,800	628,600	599,000	572,600	530,200	331,200	233,600	116,600	135,600	199,900	91,000
Total stockholders’ equity	US$ in thousands	5,435,000	5,336,300	5,252,600	5,099,400	5,011,300	4,994,600	4,855,400	4,591,400	4,469,500	4,358,000	4,197,000	4,104,800	2,985,900	2,806,100	2,674,300	2,552,300	2,540,800	2,440,100	2,462,200	2,355,600
ROE		6.63%	4.87%	6.11%	7.14%	8.44%	12.37%	14.14%	13.91%	14.06%	13.74%	13.64%	12.92%	11.09%	8.32%	4.36%	5.31%	7.87%	3.73%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $360,200K ÷ $5,435,000K
= 6.63%

Avantor Inc's return on equity (ROE) has shown fluctuations over the past few quarters. The ROE has ranged from a low of 3.73% in September 2019 to a high of 14.14% in March 2023. The latest ROE figure of 6.63% as of June 30, 2024, indicates a moderate return relative to historical performance.

The downward trend in ROE from a peak of 14.14% in March 2023 to 6.63% in June 2024 suggests a possible decline in profitability or efficiency in utilizing shareholders' equity to generate returns. This downward trajectory should be closely monitored to assess any underlying causes and take remedial actions if needed to enhance ROE in the future.

Overall, while Avantor Inc has demonstrated varying levels of ROE, the recent figures highlight the importance of consistent monitoring and analysis to ensure sustained profitability and efficient use of equity capital.