Avantor Inc (AVTR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	12,972,700	13,464,300	13,897,200	9,906,500	9,773,300
Total stockholders’ equity	US$ in thousands	5,252,600	4,855,400	4,197,000	2,674,300	2,462,200
Financial leverage ratio		2.47	2.77	3.31	3.70	3.97

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,972,700K ÷ $5,252,600K
= 2.47

The financial leverage ratio of Avantor Inc has been trending downwards over the past five years, indicating a decrease in the company's reliance on debt to finance its operations and assets. The ratio decreased from 3.97 in 2019 to 2.47 in 2023. This decreasing trend suggests that Avantor Inc has been reducing its debt levels relative to its equity, which can lower financial risk and improve overall financial stability. It indicates that the company may be managing its capital structure more efficiently and potentially enhancing its ability to weather economic downturns. However, it is important to further analyze the components of the ratio and consider other financial metrics to gain a comprehensive understanding of Avantor Inc's financial leverage position.