Avanos Medical Inc (AVNS)

Fixed asset turnover

		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	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	619,900	735,200	767,700	802,100	810,000	788,200	772,300	757,500	741,300	731,000	729,200	703,100	699,300	702,400	688,900	698,200	682,600	663,500	656,500	638,800
Property, plant and equipment	US$ in thousands	117,200	116,800	122,600	163,500	118,600	163,400	164,300	166,900	168,100	169,700	171,900	173,400	175,300	177,300	179,300	178,700	184,500	182,100	174,400	159,600
Fixed asset turnover		5.29	6.29	6.26	4.91	6.83	4.82	4.70	4.54	4.41	4.31	4.24	4.05	3.99	3.96	3.84	3.91	3.70	3.64	3.76	4.00

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $619,900K ÷ $117,200K
= 5.29

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue relative to its investment in fixed assets. Avanos Medical Inc's fixed asset turnover has been relatively stable over the past eight quarters, ranging from 4.56 to 6.42.

The fluctuations in the fixed asset turnover ratio indicate varying levels of efficiency in utilizing the company's fixed assets to generate sales. The higher the ratio, the more efficiently Avanos Medical Inc is using its fixed assets to generate revenue.

In Q3 2023, Avanos Medical Inc achieved its highest fixed asset turnover of 6.42, indicating that the company generated $6.42 in sales revenue for every dollar invested in fixed assets during that quarter. This suggests a high level of efficiency in utilizing fixed assets to drive sales.

On the other hand, in Q1 2023, the fixed asset turnover decreased to 4.98, signaling a decrease in the efficiency of utilizing fixed assets to generate revenue compared to the previous quarter.

Overall, Avanos Medical Inc's consistent performance in maintaining fixed asset turnover above 4.5 indicates that the company is effectively utilizing its fixed assets to drive sales revenue, albeit with some fluctuations in efficiency levels.