Avantor Inc (AVTR)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	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
Long-term debt	US$ in thousands	3,234,700	4,691,400	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
Total stockholders’ equity	US$ in thousands	5,956,700	5,553,200	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
Debt-to-capital ratio		0.35	0.46	0.47	0.48	0.50	0.51	0.53	0.53	0.55	0.56	0.58	0.61	0.62	0.57	0.65	0.62	0.65	0.66	0.67	0.67

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,234,700K ÷ ($3,234,700K + $5,956,700K)
= 0.35

The debt-to-capital ratio of Avantor Inc has been decreasing steadily from 0.67 as of March 31, 2020, to 0.35 as of December 31, 2024. This indicates that the company has been successful in reducing its debt relative to its overall capital structure over the analyzed period. A declining trend in the debt-to-capital ratio suggests improved financial health and lower financial risk for the company. Investors and creditors may view a decreasing debt-to-capital ratio positively, as it reflects a stronger financial position and enhanced ability to handle financial obligations. However, it is important to consider the reasons behind the ratio changes and assess the overall debt management strategy of the company in conjunction with other financial metrics for a comprehensive analysis.