Avantor Inc (AVTR)
Debt-to-equity 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-equity ratio | 0.54 | 0.84 | 0.89 | 0.94 | 1.00 | 1.04 | 1.11 | 1.15 | 1.22 | 1.29 | 1.41 | 1.56 | 1.66 | 1.35 | 1.88 | 1.64 | 1.82 | 1.98 | 1.99 | 2.07 |
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 shown a decreasing trend over the reporting period from March 31, 2020, to December 31, 2024. Starting at 2.07 in March 2020, the ratio has steadily declined to 0.54 by December 31, 2024. This indicates that the company has been progressively reducing its debt levels relative to its equity financing, which can be seen as a positive signal of financial health and stability.
A high debt-to-equity ratio suggests that the company relies heavily on debt to finance its operations, which can lead to increased financial risk. On the other hand, a lower ratio signifies that the company has a stronger equity base to support its operations and indicates a lower level of financial risk.
The decreasing trend in Avantor Inc's debt-to-equity ratio indicates that the company has been working towards reducing its reliance on debt financing and improving its overall financial position. This trend may be viewed favorably by investors and creditors as it suggests a more sustainable capital structure and better financial health for the company.
Peer comparison
Dec 31, 2024