Avantor Inc (AVTR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 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 | 5,023,000 | 5,088,700 |
| 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 |
| Return on total capital | 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% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $714,100K ÷ ($4,856,600K + $5,435,000K)
= 6.94%
The return on total capital for Avantor Inc has shown fluctuations over the past few quarters. From December 2019 to June 2020, there was a downward trend in the return on total capital, reaching its lowest point at 4.90% in March 2020. However, there was a notable increase in the return on total capital in the subsequent quarters, with a peak of 10.36% in March 2023.
The return on total capital has since fluctuated, with values ranging between 5.89% and 9.69% up to June 2024. This indicates varying efficiency in generating profits from the total capital employed by the company. Overall, the return on total capital for Avantor Inc has shown some volatility but has generally remained above 5%, which is a positive sign of the company's ability to generate returns relative to its total capital base.
Peer comparison
Jun 30, 2024