Avantor Inc (AVTR)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	12,693,500	12,763,400	12,972,700	12,798,100	13,063,300	13,395,900	13,464,300	13,113,300	13,430,900	13,836,400	13,897,200	12,199,200	11,249,700	9,738,800	9,906,500	9,938,400	9,867,000	9,786,200	9,773,300	9,763,100
Debt-to-assets ratio		0.38	0.39	0.41	0.41	0.43	0.43	0.44	0.45	0.47	0.49	0.50	0.45	0.50	0.47	0.49	0.51	0.51	0.52	0.51	0.52

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,856,600K ÷ $12,693,500K
= 0.38

The debt-to-assets ratio of Avantor Inc has been fluctuating over the past few quarters, ranging from 0.38 to 0.52. A lower debt-to-assets ratio indicates a lower level of debt relative to the company's assets, reflecting a relatively lower financial risk for the company. Conversely, a higher ratio suggests a higher proportion of debt relative to assets, which can indicate higher financial leverage and risk.

Analyzing the trend, we observe that the debt-to-assets ratio has generally been increasing from 0.38 in June 2020 to 0.52 in December 2021, before slightly decreasing in recent quarters. This indicates that Avantor Inc has been taking on more debt relative to its assets over the past few years, which could imply increased financial risk for the company.

It is crucial to monitor the trend of the debt-to-assets ratio over time to evaluate Avantor Inc's capital structure and financial health. Any significant deviations from historical levels may warrant further investigation into the company's debt management strategies and financial stability.