Avantor Inc (AVTR)

Debt-to-equity 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-equity ratio		1.00	1.22	1.66	1.82	2.04

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,276,700K ÷ $5,252,600K
= 1.00

The debt-to-equity ratio of Avantor Inc has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing relative to equity. In 2019, the ratio was at its highest at 2.04, suggesting a higher proportion of debt in the company's capital structure compared to equity. Subsequently, the ratio has gradually decreased to 1.00 by the end of 2023, reflecting a more balanced mix of debt and equity financing.

This decreasing trend in the debt-to-equity ratio could signify a more conservative approach to capital structure management by Avantor Inc. A lower ratio typically indicates lower financial risk and potentially better financial health as the company relies less on debt to fund its operations and growth. However, it's essential to consider the industry norms and the company's specific circumstances when interpreting this ratio further.