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.