Avantor Inc (AVTR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	2,462,200	2,355,600
Debt-to-capital ratio		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	0.67	0.68

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,856,600K ÷ ($4,856,600K + $5,435,000K)
= 0.47

The debt-to-capital ratio for Avantor Inc has been gradually increasing over the past several quarters, starting at 0.47 in June 2020 and reaching 0.68 by September 2019. This indicates that the company's reliance on debt as a source of capital has been rising compared to its equity financing. A higher debt-to-capital ratio suggests a higher level of financial risk and potentially higher interest expenses, as the company has a larger proportion of debt in its capital structure compared to equity. Avantor Inc may need to carefully manage its debt levels to ensure it remains sustainable and does not impact its overall financial health and operational flexibility.