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.