Avanos Medical Inc (AVNS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 165.29 | 196.45 | 200.01 | 205.17 | 191.85 | 170.52 | 154.04 | 198.42 | 187.27 | 192.65 | 167.39 | 150.94 | 144.25 | 152.19 | 154.99 | 171.01 | 180.52 | 206.44 | 203.67 | 181.26 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 165.29 | 196.45 | 200.01 | 205.17 | 191.85 | 170.52 | 154.04 | 198.42 | 187.27 | 192.65 | 167.39 | 150.94 | 144.25 | 152.19 | 154.99 | 171.01 | 180.52 | 206.44 | 203.67 | 181.26 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 165.29 + — – —
= 165.29
The cash conversion cycle of Avanos Medical Inc fluctuated over the period analyzed. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
The cash conversion cycle for Avanos Medical Inc ranged from approximately 145 days to over 200 days during the period, indicating variations in the efficiency of the company's working capital management. A lower number of days is generally more favorable as it suggests a quicker conversion of inventory into cash.
The trend showed a decreasing cycle from March 2021 to December 2021, reaching a low of 144.25 days, which may reflect improved inventory management or quicker sales realization. Subsequently, there was an increase in the cycle till June 2022, which peaked at 192.65 days. This increase could suggest challenges in managing inventory and receivables efficiently.
From June 2022 to December 2024, the cash conversion cycle fluctuated between approximately 150 days and 205 days, indicating ongoing variability in the company's ability to efficiently convert its resources into cash. It is crucial for Avanos Medical Inc to continuously monitor and manage its inventory, accounts receivable, and accounts payable to optimize its cash conversion cycle and maintain healthy cash flows.
Peer comparison
Dec 31, 2024