Avantor Inc (AVTR)

Debt-to-equity 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-equity ratio		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	2.04	2.16

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,856,600K ÷ $5,435,000K
= 0.89

The debt-to-equity ratio of Avantor Inc has been fluctuating over the past five years, ranging from 0.89 to 2.16. The trend indicates an increasing level of leverage over time, starting at a relatively low ratio and progressively rising to higher levels. A debt-to-equity ratio above 1 typically suggests that the company is predominantly financed by debt rather than equity.

The ratio exceeding 1 implies that Avantor has more debt than equity in its capital structure, indicating a higher level of financial risk. The company's ability to cover its debt obligations and sustain operations may be impacted by this heightened leverage. It is essential for investors and stakeholders to monitor this trend closely to assess Avantor's financial health and risk profile.

Overall, the increasing debt-to-equity ratio of Avantor Inc raises concerns about its financial leverage and the potential impact on its long-term sustainability and profitability.