Avantor Inc (AVTR)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	5,276,700	5,923,300	6,978,000	4,867,500	5,023,000
Total assets	US$ in thousands	12,972,700	13,464,300	13,897,200	9,906,500	9,773,300
Debt-to-assets ratio		0.41	0.44	0.50	0.49	0.51

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,276,700K ÷ $12,972,700K
= 0.41

The debt-to-assets ratio of Avantor Inc has been gradually decreasing over the past five years, from 0.51 in 2019 to 0.41 in 2023. This indicates that the company has been reducing its reliance on debt financing in relation to its total assets. A lower debt-to-assets ratio suggests that the company has a stronger financial position and is less leveraged, which can be viewed positively by investors and creditors.

The decreasing trend in the debt-to-assets ratio may indicate that Avantor Inc is effectively managing its debt levels and optimizing its capital structure. It also implies that the company may have a higher proportion of equity financing compared to debt, which can lower financial risk and improve financial stability in the long term.

Overall, a decreasing debt-to-assets ratio reflects positively on Avantor Inc's financial health and sustainability, as it indicates a prudent approach to managing debt and optimizing capital resources in support of sustainable growth and profitability.