Avanos Medical Inc (AVNS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 107,700 | 89,000 | 92,200 | 75,800 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 165,900 | 212,900 | 208,200 | 205,200 | 234,600 | 170,700 | 160,500 | 158,500 | 185,800 | 162,300 | 151,100 | 152,900 | 139,200 | 129,200 | 158,300 | 154,600 | 166,300 | 179,400 | 176,000 | 189,400 |
| Cash ratio | 0.65 | 0.42 | 0.44 | 0.37 | 0.37 | 0.63 | 0.51 | 0.60 | 0.69 | 0.72 | 0.70 | 0.68 | 0.85 | 0.76 | 0.63 | 0.65 | 0.67 | 1.00 | 1.05 | 0.99 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($107,700K
+ $—K)
÷ $165,900K
= 0.65
The cash ratio of Avanos Medical Inc has shown some fluctuation over the years. Generally, the cash ratio measures the company's ability to cover its short-term liabilities with its available cash. A cash ratio of 1 or higher is considered healthy, indicating the company can cover its current liabilities with its cash on hand.
Looking at the data provided, we see that the cash ratio of Avanos Medical Inc ranged from a high of 1.05 in June 2020 to a low of 0.37 in December 2023 and March 2024. The ratio improved slightly in subsequent quarters but remained below 1, indicating the company may have had some difficulty covering its short-term obligations with its cash reserves during those periods.
It is important to note that a low cash ratio could suggest that the company may need to rely on other sources of liquidity, such as short-term borrowing or liquidation of other assets, to meet its obligations. Analysts and investors typically monitor the cash ratio along with other liquidity ratios to assess a company's financial health and ability to manage its short-term financial obligations.
Peer comparison
Dec 31, 2024