Avanos Medical Inc (AVNS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 165.29 | 202.89 | 187.73 | 144.25 | 180.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 165.29 | 202.89 | 187.73 | 144.25 | 180.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 165.29 + — – —
= 165.29
Avanos Medical Inc's cash conversion cycle has shown some fluctuations over the past five years. The cycle decreased from 180.52 days on December 31, 2020, to 144.25 days on December 31, 2021, indicating an improvement in efficiency in managing its cash flow during that period. However, the cycle increased to 187.73 days on December 31, 2022, and further to 202.89 days on December 31, 2023, suggesting potential challenges in managing working capital in those years.
On December 31, 2024, the cash conversion cycle decreased to 165.29 days, indicating a positive trend in the company's efficiency in converting its investments in inventory and accounts receivable into cash. Overall, fluctuations in the cash conversion cycle may reflect changes in Avanos Medical Inc's operating activities and the effectiveness of its working capital management strategies over the five-year period.
Peer comparison
Dec 31, 2024