Avantor Inc (AVTR)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,234,700 | 5,276,700 | 5,923,300 | 6,978,000 | 4,867,500 |
| Total stockholders’ equity | US$ in thousands | 5,956,700 | 5,252,600 | 4,855,400 | 4,197,000 | 2,674,300 |
| Debt-to-equity ratio | 0.54 | 1.00 | 1.22 | 1.66 | 1.82 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,234,700K ÷ $5,956,700K
= 0.54
The debt-to-equity ratio of Avantor Inc has been steadily decreasing over the past five years, indicating a positive trend in the company's financial leverage. As of December 31, 2020, the ratio stood at 1.82, and by December 31, 2024, it had decreased significantly to 0.54. This reduction suggests that Avantor has been effectively managing its debt levels relative to its equity, which may signal improved financial stability and lower financial risk for the company. A decreasing debt-to-equity ratio is generally viewed favorably by investors and creditors as it implies that the company is relying less on debt to finance its operations and growth opportunities. Overall, the trend in Avantor's debt-to-equity ratio reflects a positive financial position and prudent financial management by the company.
Peer comparison
Dec 31, 2024