Avantor Inc (AVTR)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 711,500 | 309,600 | 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 | 5,956,700 | 5,553,200 | 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 |
| ROE | 11.94% | 5.58% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $711,500K ÷ $5,956,700K
= 11.94%
Avantor Inc's return on equity (ROE) has shown fluctuation over the past few years. The ROE stood at approximately 3.73% as of March 31, 2020, reflecting a relatively low profitability in relation to shareholders' equity. Subsequently, there was an improvement in ROE to 7.87% by June 30, 2020, indicating a better return generated on the shareholders' investment.
The trend continued with variations in ROE over the following quarters, ranging from 5.31% to 13.64% by December 31, 2021. The company witnessed a significant increase in ROE, reaching 14.06% by June 30, 2022, signaling enhanced profitability relative to shareholders' equity.
However, after achieving this peak, the ROE started to decline gradually from June 30, 2022, to December 31, 2024, ranging between 4.87% and 11.94%. This decline suggests a potential decrease in profitability generated on shareholders' equity during this period.
The recent ROE figures indicate a potential need for Avantor Inc to focus on strategies that could further improve profitability and generate higher returns on shareholders' equity in the future.
Peer comparison
Dec 31, 2024