Avantor Inc (AVTR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	5,252,600	4,855,400	4,197,000	2,674,300	2,462,200
Debt-to-capital ratio		0.50	0.55	0.62	0.65	0.67

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,276,700K ÷ ($5,276,700K + $5,252,600K)
= 0.50

The debt-to-capital ratio of Avantor Inc has been declining over the past five years, indicating an improvement in the company's financial leverage and solvency position. The ratio decreased from 0.67 in 2019 to 0.50 in 2023. This downward trend suggests that Avantor has been reducing its reliance on debt financing relative to its total capital base, which could lead to lower financial risks and increased financial flexibility.

A lower debt-to-capital ratio generally signifies that a company is less reliant on debt to fund its operations and investments, which can be viewed favorably by investors and creditors. It may also indicate that the company is managing its debt levels effectively and improving its capital structure.

Overall, the decreasing trend in Avantor's debt-to-capital ratio suggests a more sustainable financial position and a potentially stronger ability to weather economic downturns or adverse market conditions. However, it is essential for the company to continue monitoring and managing its debt levels to ensure a balanced and optimal capital structure.