Avanos Medical Inc (AVNS)

Short-term

Turnover ratios

The activity ratios of Avanos Medical Inc reflect its efficiency in managing its inventory, receivables, payables, and working capital over the specified periods.

1. Inventory Turnover: The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a given period. Avanos Medical's inventory turnover ratio fluctuated between 1.77 to 2.53 over the analyzed period. A generally increasing trend in recent quarters, reaching a peak of 2.53 on December 31, 2021, suggests improved efficiency in managing inventory levels and sales.

2. Receivables Turnover: The absence of data for the receivables turnover indicates that specific information on how quickly the company collects its accounts receivable is not available. A consistent recording of "—" for all periods implies the company may not disclose this metric or does not monitor it closely.

3. Payables Turnover: Similar to receivables, the lack of data for payables turnover suggests that details on how efficiently Avanos Medical pays its suppliers in a given period are not provided. Again, all values reported as "—" indicate a lack of disclosure or emphasis on this ratio.

4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently the company utilizes its working capital to generate sales revenue. Avanos Medical's working capital turnover ranged from 1.85 to 3.02, with a notable increase observed in the later quarters, peaking at 3.02 on December 31, 2024. This trend indicates that the company effectively uses its working capital to generate sales, signaling strong operational efficiency.

In summary, Avanos Medical Inc demonstrates strength in managing its inventory levels and working capital efficiently, as indicated by the improving trends in inventory turnover and working capital turnover ratios. However, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall activity management.

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Average number of days

Based on the data provided, we can analyze the activity ratios of Avanos Medical Inc as follows:

1. Days of Inventory on Hand (DOH):
- Avanos Medical Inc's DOH has fluctuated over the years, ranging from a low of 144.25 days on December 31, 2021, to a high of 205.17 days on March 31, 2024.
- Generally, a lower DOH indicates efficient management of inventory, while a higher DOH suggests excess or slow-moving inventory.
- The trend in Avanos Medical Inc's DOH shows some volatility but has generally been decreasing since December 31, 2021.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on the DSO for Avanos Medical Inc, which is used to measure how quickly a company's accounts receivable are collected.
- Without this information, we cannot assess the efficiency of Avanos Medical Inc in collecting payments from customers.

3. Number of Days of Payables:
- Similar to the DSO, the data does not include information on the number of days of payables for Avanos Medical Inc, which reflects how long a company takes to pay its suppliers.
- Without this data, we cannot evaluate the company's payment practices or its ability to manage its payables effectively.

In conclusion, while we can analyze Avanos Medical Inc's inventory management based on the DOH metric, the absence of data on DSO and payables limits our ability to provide a comprehensive assessment of the company's overall activity ratios.

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Long-term

Avanos Medical Inc's fixed asset turnover ratio has shown fluctuations over the years, ranging from 3.43 to 6.37. The ratio improved steadily from March 31, 2020, to June 30, 2023, indicating that the company was generating more revenue from its fixed assets. However, there was a slight decline in the ratio by the end of September 2023.

In contrast, the total asset turnover ratio has been relatively stable, with values ranging from 0.40 to 0.60. The ratio increased gradually from March 31, 2020, to December 31, 2021, indicating that Avanos Medical Inc was effectively utilizing its total assets to generate revenue.

It is crucial for the company to focus on maintaining a balance between utilizing fixed assets efficiently, as indicated by the fixed asset turnover ratio, and generating revenue from its total assets, as seen in the total asset turnover ratio, to ensure sustainable long-term growth and profitability.