Avanos Medical Inc (AVNS)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	687,800	681,500	682,400	680,100	705,700	749,900	780,700	814,300	820,000	795,900	777,900	761,300	744,600	736,200	737,800	715,100	714,800	719,600	705,300	713,800
Total assets	US$ in thousands	1,154,200	1,656,200	1,657,800	1,661,300	1,692,400	1,724,900	1,666,700	1,734,900	1,786,900	1,775,200	1,752,800	1,766,500	1,594,600	1,597,900	1,683,300	1,648,800	1,672,800	1,799,100	1,755,900	1,763,700
Total asset turnover		0.60	0.41	0.41	0.41	0.42	0.43	0.47	0.47	0.46	0.45	0.44	0.43	0.47	0.46	0.44	0.43	0.43	0.40	0.40	0.40

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $687,800K ÷ $1,154,200K
= 0.60

Total asset turnover is a key financial ratio that indicates the efficiency with which a company is utilizing its assets to generate revenue. In the case of Avanos Medical Inc, the total asset turnover ratio has shown a relatively stable trend over the period from March 31, 2020, to December 31, 2024. The ratio ranged from 0.40 to 0.60 during this period.

The trend indicates that the company effectively generates revenue relative to its total assets, with a slight improvement noted over time. The ratio increased gradually from 0.40 in March 2020 to 0.60 by December 2024, suggesting that Avanos Medical Inc has been able to generate more revenue for each dollar invested in assets.

However, it is important to note the fluctuations in the total asset turnover ratio during the period. The ratio decreased from its peak of 0.60 in December 2024 to 0.41 by June 30, 2024, showing some variability in the company's asset utilization efficiency.

Overall, the trend in the total asset turnover ratio for Avanos Medical Inc indicates that the company has been efficiently utilizing its assets to generate revenue, albeit with some fluctuations observed over the years. Additional analysis and comparison with industry benchmarks can provide further insights into the company's asset efficiency.