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Avantor (Avantor) Interest Coverage : 2.81 (As of Dec. 2023)


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What is Avantor Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Avantor's Operating Income for the three months ended in Dec. 2023 was $183 Mil. Avantor's Interest Expense for the three months ended in Dec. 2023 was $-65 Mil. Avantor's interest coverage for the quarter that ended in Dec. 2023 was 2.81. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Avantor's Interest Coverage or its related term are showing as below:

AVTR' s Interest Coverage Range Over the Past 10 Years
Min: 0.12   Med: 2.3   Max: 4.47
Current: 3.01


AVTR's Interest Coverage is ranked worse than
79.82% of 1194 companies
in the Chemicals industry
Industry Median: 9.8 vs AVTR: 3.01

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Avantor Interest Coverage Historical Data

The historical data trend for Avantor's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Avantor Interest Coverage Chart

Avantor Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial 1.25 2.30 4.47 4.25 3.01

Avantor Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.61 3.14 3.17 2.90 2.81

Competitive Comparison of Avantor's Interest Coverage

For the Specialty Chemicals subindustry, Avantor's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Avantor's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Avantor's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Avantor's Interest Coverage falls into.



Avantor Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Avantor's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Avantor's Interest Expense was $-285 Mil. Its Operating Income was $857 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,277 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*857.2/-284.8
=3.01

Avantor's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Avantor's Interest Expense was $-65 Mil. Its Operating Income was $183 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,277 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*183.3/-65.3
=2.81

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Avantor  (NYSE:AVTR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Avantor Interest Coverage Related Terms

Thank you for viewing the detailed overview of Avantor's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Avantor (Avantor) Business Description

Traded in Other Exchanges
Address
100 Matsonford Road, Suite 200, Building One, Radnor Corporate Center, Radnor, PA, USA, 19087
Avantor Inc is involved in providing products and services to biopharma, healthcare, education and government, and advanced technologies and applied materials industries. The company's offerings include materials and consumables, equipment and instrumentation and services and specialty procurement. Its brand profile consists of NuSil, RANKEM, POCH, BeneSphera, and Macron Fine Chemicals among others. The firm operates in three geographical segments namely Americas, Europe, and AMEA. It generates a majority of its revenue from the Americas.
Executives
Benoit Gourdier officer: EVP, Biopharma Production 100 MATSONFORD ROAD, RADNOR PA 19087
Steven W Eck officer: SVP & Chief Accounting Officer C/O CSS INDUSTRIES, INC., 450 PLYMOUTH ROAD, SUITE 300, PLYMOUTH MEETING PA 19462
Frederic Vanderhaegen officer: EVP, Europe C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Brittany Hankamer officer: EVP, Chief HR Officer 100 MATSONFORD ROAD, RADNOR PA 19087
R. Brent Jones officer: EVP, Chief Financial Officer C/O PALL CORPORATION, 25 HARBOR PARK DRIVE, PORT WASHINGTON NY 11050
Claudius Sokenu officer: EVP, Chief Legal & Compliance C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, BLUE BELL PA 19422
Randy Lee Stone officer: EVP, Proprietary Products 974 CENTRE ROAD, CRP 730, WILMINGTON DE 19805
Christophe Couturier officer: See Remarks 9 FOURTH AVENUE, C/O OVASCIENCE INC., CAMBRIDGE MA 02451
Gerard Brophy officer: EVP, Biopharma Production C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Kitty Sahin officer: EVP, Strategy&Corp Development 100 MATSONFORD ROAD, RADNOR PA 19087
Thomas A Szlosek officer: EVP and CFO HONEYWELL INTERNATIONAL INC., 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Michael Stubblefield director, officer: President and CEO C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Rajiv Gupta director 234 RAVENCLIFF DRIVE, ST DAVIDS PA 19087
Joseph R Massaro director 5725 DELPHI DRIVE, TROY MI 48098
Mala Murthy director C/O TELADOC HEALTH, INC., 2 MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577