Avanos Medical Inc (AVNS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 687,800 | 673,300 | 820,000 | 744,600 | 714,800 |
| Total current assets | US$ in thousands | 393,400 | 487,000 | 499,800 | 418,600 | 467,200 |
| Total current liabilities | US$ in thousands | 165,900 | 234,600 | 185,800 | 139,200 | 166,300 |
| Working capital turnover | 3.02 | 2.67 | 2.61 | 2.66 | 2.38 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $687,800K ÷ ($393,400K – $165,900K)
= 3.02
The working capital turnover ratio measures how efficiently Avanos Medical Inc is utilizing its working capital to generate sales revenue. The trend in the working capital turnover ratio over the past five years shows an overall positive performance.
Starting at 2.38 in December 2020, the ratio increased steadily to 2.66 in December 2021, indicating an improvement in the company's ability to generate sales from its working capital. Although there was a slight dip to 2.61 in December 2022, the ratio bounced back to 2.67 in December 2023.
The most significant improvement was observed in December 2024, where the working capital turnover ratio reached 3.02, showcasing a substantial increase in efficiency in utilizing working capital to generate sales revenue.
Overall, the trend suggests that Avanos Medical Inc has been effectively managing its working capital to drive sales growth and indicates a positive performance in terms of operational efficiency and financial management.
Peer comparison
Dec 31, 2024