Avanos Medical Inc (AVNS)
Working capital 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 current assets | US$ in thousands | 393,400 | 472,600 | 474,100 | 467,800 | 487,000 | 524,600 | 506,900 | 453,800 | 499,800 | 470,000 | 437,100 | 439,200 | 418,600 | 405,000 | 443,500 | 447,900 | 467,200 | 567,600 | 517,100 | 524,100 |
Total current liabilities | US$ in thousands | 165,900 | 212,900 | 208,200 | 205,200 | 234,600 | 170,700 | 160,500 | 158,500 | 185,800 | 162,300 | 151,100 | 152,900 | 139,200 | 129,200 | 158,300 | 154,600 | 166,300 | 179,400 | 176,000 | 189,400 |
Working capital turnover | 3.02 | 2.62 | 2.57 | 2.59 | 2.80 | 2.12 | 2.25 | 2.76 | 2.61 | 2.59 | 2.72 | 2.66 | 2.66 | 2.67 | 2.59 | 2.44 | 2.38 | 1.85 | 2.07 | 2.13 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $687,800K ÷ ($393,400K – $165,900K)
= 3.02
The working capital turnover for Avanos Medical Inc has fluctuated over the years, ranging from a low of 1.85 in September 30, 2020, to a high of 3.02 in December 31, 2024. This ratio measures the efficiency with which the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support its operations and sales activities.
In the recent periods, Avanos Medical Inc has shown an improving trend in its working capital turnover, reaching 2.76 in March 31, 2023, and further increasing to 3.02 in December 31, 2024. This suggests that the company is becoming more efficient in its working capital management, potentially freeing up cash for other investments or reducing the need for external financing.
It is essential for the company to monitor this ratio regularly to ensure that working capital is being utilized optimally to support the business activities and maximize profitability. Overall, the increasing trend in the working capital turnover ratio is a positive indication of Avanos Medical Inc's operational efficiency and financial health.
Peer comparison
Dec 31, 2024