Avanos Medical Inc (AVNS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 587,500 | 810,000 | 741,300 | 699,300 | 682,600 |
| Property, plant and equipment | US$ in thousands | 117,200 | 118,600 | 168,100 | 175,300 | 184,500 |
| Fixed asset turnover | 5.01 | 6.83 | 4.41 | 3.99 | 3.70 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $587,500K ÷ $117,200K
= 5.01
The fixed asset turnover of Avanos Medical Inc has consistently improved over the past five years, indicating that the company is generating more revenue from its fixed assets. The ratio has increased from 3.78 in 2019 to 5.74 in 2023, suggesting that Avanos is utilizing its property, plant, and equipment more efficiently to generate sales. This improvement signifies better asset utilization and operational efficiency, which can lead to higher profitability and potential growth opportunities for the company. Overall, the trend in the fixed asset turnover ratio reflects positively on Avanos Medical Inc's operational performance and effectiveness in managing its fixed assets.
Peer comparison
Dec 31, 2023