Avanos Medical Inc (AVNS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 87,700 | 127,700 | 118,500 | 111,500 | 205,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 234,600 | 191,000 | 139,200 | 166,300 | 212,500 |
| Cash ratio | 0.37 | 0.67 | 0.85 | 0.67 | 0.97 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($87,700K
+ $—K)
÷ $234,600K
= 0.37
The cash ratio of Avanos Medical Inc has fluctuated over the past five years. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.
In 2023, the cash ratio decreased to 0.50, which suggests a lower level of liquidity compared to the previous year. This could indicate that Avanos Medical Inc may have less cash available relative to its short-term obligations.
In 2022, the cash ratio was 0.76, showing an improvement from the previous year. This implies that Avanos Medical Inc had a higher level of cash compared to its short-term liabilities in that period.
In 2021, the cash ratio was 0.98, indicating a strong liquidity position for the company. Avanos Medical Inc had nearly one dollar of cash for every dollar of short-term liabilities, indicating a healthy liquidity position.
In 2020, the cash ratio was 0.78, showing a slight decrease from the previous year. Although the ratio declined, Avanos Medical Inc still had a significant amount of cash available to cover its short-term obligations.
In 2019, the cash ratio was 1.08, reflecting the highest level of liquidity among the years analyzed. This suggests that Avanos Medical Inc had more than enough cash to cover its short-term liabilities, demonstrating a very strong liquidity position.
Overall, Avanos Medical Inc's cash ratio has shown variability over the years, with some fluctuations in its liquidity position. Management should closely monitor the cash position and ensure sufficient cash reserves to meet short-term obligations.
Peer comparison
Dec 31, 2023