Avantor Inc (AVTR)

Solvency ratios

	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
Debt-to-assets ratio	0.38	0.39	0.41	0.41	0.43	0.43	0.44	0.45	0.47	0.49	0.50	0.45	0.50	0.47	0.49	0.51	0.51	0.52	0.51	0.52
Debt-to-capital ratio	0.47	0.48	0.50	0.51	0.53	0.53	0.55	0.56	0.58	0.61	0.62	0.57	0.65	0.62	0.65	0.66	0.67	0.67	0.67	0.68
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
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

Avantor Inc's solvency ratios have shown a fluctuating trend over the past several quarters. The debt-to-assets ratio has remained relatively stable between 0.38 and 0.52, indicating that the company's assets are mostly financed by debt, ranging from 38% to 52%.

The debt-to-capital ratio has followed a similar pattern, hovering between 0.47 and 0.68. This ratio reflects the proportion of the company's capital structure that is financed by debt, showing a range of 47% to 68% over the period.

The debt-to-equity ratio has exhibited a more significant variation, increasing from 0.89 to 2.16. This indicates that Avantor has been relying more on debt financing compared to equity, with the ratio of debt to equity rising from 89% to 216% throughout the analyzed period.

The financial leverage ratio, which measures the overall debt level relative to equity, has shown a similar upward trend, increasing from 2.34 to 4.14. This suggests that the company's financial risk has been escalating, with the ratio of debt to equity and other financial obligations growing from 2.34 times equity to 4.14 times equity during the period.

Overall, the trend of increasing debt levels relative to assets, capital, and equity, as indicated by the solvency ratios, raises concerns about Avantor Inc's financial risk and suggests a need for careful monitoring of its debt management strategies and overall financial health.

Coverage ratios

	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
Interest coverage	2.72	2.22	2.44	2.61	2.89	3.79	4.20	4.18	4.26	4.40	4.46	4.01	2.55	1.79	1.20	1.24	1.60	1.25

The interest coverage ratio of Avantor Inc has fluctuated over the periods presented. The ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio suggests a stronger ability to meet interest obligations.

From the data provided, we observe that the interest coverage ratio ranged from a low of 1.20 in March 2021 to a high of 4.46 in March 2022. The ratio experienced a general upward trend from September 2020 to March 2022, indicating an improvement in Avantor's ability to cover its interest payments. However, there was a notable decline in the ratio in the following periods, reaching a low point in March 2021.

The fluctuations in the interest coverage ratio may reflect changes in Avantor's profitability and/or the level of its interest expenses. It is important for investors and creditors to monitor this ratio closely to assess the company's financial health and its ability to service its debt obligations.