Avanos Medical Inc (AVNS)

Receivables 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
Receivables	US$ in thousands	142,800	167,900	131,200	167,900	163,800
Receivables turnover		4.11	4.82	5.65	4.16	4.17

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $587,500K ÷ $142,800K
= 4.11

The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. Higher values indicate that the company is collecting its receivables more frequently, which is generally favorable.

Analyzing the receivables turnover ratio of Avanos Medical Inc over the past five years reveals a fluctuating trend. The ratio ranged from 4.26 to 5.68 during this period. In 2021, the company had the highest receivables turnover of 5.68, indicating that the company collected its receivables more frequently that year. However, in the following years, the ratio decreased slightly to 4.71 in 2023, which suggests a slower collection of accounts receivable compared to 2021.

Overall, the trend in Avanos Medical Inc's receivables turnover ratio indicates fluctuations in the efficiency of collecting accounts receivable over the past five years, with some years showing better performance in this aspect than others. Further analysis of the company's receivables management practices and the industry average can provide more insights into the effectiveness of its accounts receivable collection processes.