Avantor Inc (AVTR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,081,700 | 628,400 | 714,100 | 610,700 | 695,300 | 755,000 | 821,700 | 1,039,800 | 1,116,900 | 1,073,200 | 1,038,200 | 1,014,100 | 970,400 | 852,100 | 568,900 | 473,600 | 369,900 | 435,400 | 613,600 | 507,300 |
| Long-term debt | US$ in thousands | 3,234,700 | 4,691,400 | 4,856,600 | 5,023,900 | 5,276,700 | 5,290,500 | 5,570,300 | 5,736,000 | 5,923,300 | 5,907,500 | 6,292,700 | 6,815,800 | 6,978,000 | 5,549,800 | 5,611,500 | 4,606,300 | 4,867,500 | 5,056,500 | 5,063,800 | 5,040,400 |
| 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 |
| Return on total capital | 11.77% | 6.13% | 6.94% | 5.89% | 6.60% | 7.27% | 7.77% | 9.69% | 10.36% | 10.22% | 9.65% | 9.08% | 8.68% | 8.83% | 6.62% | 6.39% | 4.90% | 5.72% | 8.07% | 6.78% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,081,700K ÷ ($3,234,700K + $5,956,700K)
= 11.77%
Avantor Inc's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital measures the efficiency in generating profits from the total capital invested in the company.
The return on total capital for Avantor Inc ranged from a low of 4.90% on December 31, 2020, to a high of 11.77% on December 31, 2024. The return on total capital gradually increased from 6.78% on March 31, 2020, to 10.36% on December 31, 2022, before experiencing some fluctuations in the subsequent periods.
Notably, the return on total capital increased significantly from September 30, 2024, to December 31, 2024, jumping from 6.13% to 11.77%, indicating improved profitability relative to the capital employed during that period.
Overall, the trend in Avantor Inc's return on total capital shows some variability, with periods of growth and occasional declines. It will be essential for stakeholders to further analyze the factors contributing to these fluctuations to assess the company's long-term financial sustainability and profitability.
Peer comparison
Dec 31, 2024