Avanos Medical Inc (AVNS)
Total 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 |
| Total assets | US$ in thousands | 1,692,400 | 1,786,900 | 1,603,600 | 1,672,800 | 1,799,600 |
| Total asset turnover | 0.35 | 0.45 | 0.46 | 0.42 | 0.38 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $587,500K ÷ $1,692,400K
= 0.35
The total asset turnover ratio for Avanos Medical Inc has exhibited some fluctuations over the past five years. The ratio decreased slightly from 0.47 in 2021 to 0.46 in 2022, before experiencing a more significant drop to 0.40 in 2023. This indicates that the company generated $0.40 in revenue for every dollar invested in total assets in 2023.
A lower total asset turnover ratio may suggest that the company is not efficiently utilizing its assets to generate sales. It could be due to various reasons such as poor inventory management, underutilization of assets, or declining sales relative to asset base.
Further analysis and comparison with industry benchmarks and historical performance may provide additional insights into the efficiency of Avanos Medical Inc in generating revenue from its total assets.
Peer comparison
Dec 31, 2023