Avanos Medical Inc (AVNS)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 87,700 | 107,100 | 81,800 | 95,700 | 127,700 | 117,000 | 106,500 | 104,300 | 118,500 | 97,800 | 99,900 | 100,100 | 111,500 | 180,000 | 185,000 | 187,700 | 205,300 | 214,400 | 288,100 | 348,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 234,600 | 170,700 | 160,500 | 158,500 | 191,000 | 162,300 | 151,100 | 152,900 | 139,200 | 129,200 | 158,300 | 154,600 | 166,300 | 179,400 | 176,000 | 189,400 | 212,500 | 218,100 | 187,000 | 238,400 |
| Cash ratio | 0.37 | 0.63 | 0.51 | 0.60 | 0.67 | 0.72 | 0.70 | 0.68 | 0.85 | 0.76 | 0.63 | 0.65 | 0.67 | 1.00 | 1.05 | 0.99 | 0.97 | 0.98 | 1.54 | 1.46 |
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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a company has more cash on hand relative to its short-term obligations.
Looking at the trend of Avanos Medical Inc's cash ratio over the past eight quarters, we observe some fluctuations. In Q4 2023, the cash ratio decreased to 0.50 compared to the previous quarter's 0.71. This could indicate a reduction in the company's cash reserves relative to its short-term liabilities.
However, the company's cash ratio has ranged between 0.50 to 0.81 over the past eight quarters, suggesting some stability in its ability to meet short-term obligations with cash. It is worth noting that the cash ratio was at its lowest point in Q4 2023 compared to the previous quarters, which may warrant further investigation into the company's cash management practices and liquidity position.
Overall, while the cash ratio provides insight into Avanos Medical Inc's short-term solvency and liquidity, additional analysis of the company's cash management and overall financial health would provide a more comprehensive understanding of its financial position.
Peer comparison
Dec 31, 2023