Avantor Inc (AVTR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 695,300 | 1,116,900 | 970,400 | 369,900 | 480,600 |
| Long-term debt | US$ in thousands | 5,276,700 | 5,923,300 | 6,978,000 | 4,867,500 | 5,023,000 |
| Total stockholders’ equity | US$ in thousands | 5,252,600 | 4,855,400 | 4,197,000 | 2,674,300 | 2,462,200 |
| Return on total capital | 6.60% | 10.36% | 8.68% | 4.90% | 6.42% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $695,300K ÷ ($5,276,700K + $5,252,600K)
= 6.60%
The return on total capital for Avantor Inc has fluctuated over the past five years, ranging from a low of 4.90% in 2020 to a high of 10.36% in 2022. The return on total capital was 6.60% in 2023, which represents a decrease from the previous year but is still higher than the 2019 and 2020 levels.
Overall, the returns on total capital indicate that Avantor Inc has been able to generate a reasonable return on the funds invested in the business, with fluctuations reflecting changes in the company's profitability and efficiency in capital utilization over the years. It is important for the company to continue monitoring and improving its return on total capital to ensure sustainable and stable financial performance.
Peer comparison
Dec 31, 2023