Avantor Inc (AVTR)

Financial leverage 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
Total assets	US$ in thousands	12,693,500	12,763,400	12,972,700	12,798,100	13,063,300	13,395,900	13,464,300	13,113,300	13,430,900	13,836,400	13,897,200	12,199,200	11,249,700	9,738,800	9,906,500	9,938,400	9,867,000	9,786,200	9,773,300	9,763,100
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
Financial leverage ratio		2.34	2.39	2.47	2.51	2.61	2.68	2.77	2.86	3.01	3.17	3.31	2.97	3.77	3.47	3.70	3.89	3.88	4.01	3.97	4.14

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,693,500K ÷ $5,435,000K
= 2.34

The financial leverage ratio of Avantor Inc has exhibited some fluctuations over the historical period provided. The ratio measures how much debt a company uses to finance its assets relative to its equity.

Based on the data, the financial leverage ratio has been increasing over time, indicating that the company has been relying more on debt to finance its operations and investments compared to equity. This trend suggests that Avantor Inc may have been taking on more financial risk as its debt levels relative to equity have been rising.

Generally, a higher financial leverage ratio can magnify returns on equity when the company is performing well, but it also increases the risk of financial distress during economic downturns or if the company faces operational challenges.

It is advisable for stakeholders of Avantor Inc to closely monitor the company's financial leverage ratio and assess the company's ability to service its debt obligations, especially in periods of economic uncertainty.