Avanos Medical Inc (AVNS)

Working capital 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 current assets	US$ in thousands	487,000	624,100	427,600	467,200	538,500
Total current liabilities	US$ in thousands	234,600	191,000	139,200	166,300	212,500
Working capital turnover		2.33	1.87	2.57	2.32	2.09

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $587,500K ÷ ($487,000K – $234,600K)
= 2.33

Based on the data provided for Avanos Medical Inc, the working capital turnover ratio has shown a generally increasing trend from 2.14 in 2019 to 2.67 in 2023. This indicates that the company has been more efficient in utilizing its working capital to generate revenue over the years. A higher working capital turnover ratio suggests that Avanos Medical Inc is effectively managing its working capital to support its operations and sales activities. This trend is generally positive as it reflects the company's ability to quickly turn its working capital into revenue, potentially leading to improved financial performance and profitability. Overall, the increasing trend in working capital turnover ratio demonstrates operational efficiency and effective management of working capital by Avanos Medical Inc.