Avantor Inc (AVTR)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,234,700 | 5,276,700 | 5,923,300 | 6,978,000 | 4,867,500 |
| Total assets | US$ in thousands | 12,114,500 | 12,972,700 | 13,464,300 | 13,897,200 | 9,906,500 |
| Debt-to-assets ratio | 0.27 | 0.41 | 0.44 | 0.50 | 0.49 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,234,700K ÷ $12,114,500K
= 0.27
The debt-to-assets ratio of Avantor Inc has shown a decreasing trend over the past five years based on the provided data. As of December 31, 2020, the ratio was 0.49, indicating that 49% of the company's assets were financed by debt. This ratio increased slightly to 0.50 by December 31, 2021, but then started steadily decreasing to 0.44 by December 31, 2022, further dropping to 0.41 by December 31, 2023, and significantly decreasing to 0.27 by December 31, 2024.
Overall, the decreasing trend in the debt-to-assets ratio suggests that Avantor Inc has been effectively managing its debt levels in relation to its total assets. A lower debt-to-assets ratio typically indicates lower financial risk and greater financial stability, as it implies that a smaller portion of the company's assets is funded by debt. This trend could signal improved financial health and a stronger balance sheet for Avantor Inc. The company may have been reducing its reliance on debt financing or efficiently utilizing its assets to generate revenue and profitability.
Peer comparison
Dec 31, 2024