Avanos Medical Inc (AVNS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 393,400 | 487,000 | 499,800 | 418,600 | 467,200 |
| Total current liabilities | US$ in thousands | 165,900 | 234,600 | 185,800 | 139,200 | 166,300 |
| Current ratio | 2.37 | 2.08 | 2.69 | 3.01 | 2.81 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $393,400K ÷ $165,900K
= 2.37
Avanos Medical Inc's current ratio has demonstrated fluctuation over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its current assets. From December 31, 2020, to December 31, 2021, there was an increase in the current ratio from 2.81 to 3.01, suggesting an improvement in liquidity. However, in the subsequent years, the ratio declined gradually to 2.37 by December 31, 2024.
Although the current ratio remained above 2.0 in all years, indicating a healthy liquidity position, the downward trend observed in the latter years may raise concern regarding the company's capability to cover its short-term debts. Avanos Medical Inc should closely monitor its current assets and liabilities to ensure liquidity levels remain adequate to meet obligations as they come due.
Peer comparison
Dec 31, 2024