Avantor Inc (AVTR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,084,800 | 695,300 | 1,116,900 | 970,400 | 369,900 |
| Interest expense | US$ in thousands | 11,200 | 284,800 | 265,800 | 217,400 | 307,600 |
| Interest coverage | 96.86 | 2.44 | 4.20 | 4.46 | 1.20 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,084,800K ÷ $11,200K
= 96.86
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Avantor Inc's interest coverage has shown fluctuation over the years.
- As of December 31, 2020, the interest coverage ratio was 1.20, indicating a lower ability to cover interest expenses with its earnings.
- By December 31, 2021, the interest coverage ratio improved significantly to 4.46, suggesting a stronger ability to pay off interest obligations.
- This positive trend continued into December 31, 2022, with an interest coverage ratio of 4.20, indicating a stable financial position in terms of meeting interest payments.
- However, by December 31, 2023, the interest coverage ratio decreased to 2.44, signaling a slight decline in the company's ability to cover its interest expenses.
- The most recent data as of December 31, 2024, shows a substantial increase in the interest coverage ratio to 96.86, which reflects a significant improvement in Avantor Inc's ability to comfortably cover its interest obligations.
Overall, Avantor Inc's interest coverage has shown variability but has strengthened significantly in the most recent period, suggesting a potentially healthier financial position in terms of managing debt-related costs.
Peer comparison
Dec 31, 2024