Avantor Inc (AVTR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,114,500 | 12,972,700 | 13,464,300 | 13,897,200 | 9,906,500 |
| Total stockholders’ equity | US$ in thousands | 5,956,700 | 5,252,600 | 4,855,400 | 4,197,000 | 2,674,300 |
| Financial leverage ratio | 2.03 | 2.47 | 2.77 | 3.31 | 3.70 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,114,500K ÷ $5,956,700K
= 2.03
The financial leverage ratio of Avantor Inc has shown a declining trend over the past five years, decreasing from 3.70 in December 2020 to 2.03 in December 2024. This indicates that the company's reliance on debt to finance its operations has been reducing steadily. A lower financial leverage ratio suggests that Avantor is becoming less dependent on borrowed funds and is likely managing its debt more efficiently, which can lead to lower financial risk and increased financial stability. It is essential for investors and creditors to monitor this trend as a decreasing financial leverage ratio generally signals a healthier financial position for the company.
Peer comparison
Dec 31, 2024