Avanos Medical Inc (AVNS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 487,000 | 624,100 | 427,600 | 467,200 | 538,500 |
| Total current liabilities | US$ in thousands | 234,600 | 191,000 | 139,200 | 166,300 | 212,500 |
| Current ratio | 2.08 | 3.27 | 3.07 | 2.81 | 2.53 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $487,000K ÷ $234,600K
= 2.08
The current ratio of Avanos Medical Inc has fluctuated over the past five years, ranging from a low of 2.08 in 2023 to a high of 3.01 in 2021. A current ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations. In general, a higher current ratio signifies a stronger liquidity position, as seen in 2021 with a ratio of 3.01.
However, the slight decrease in the current ratio in 2023 to 2.08 may indicate a decrease in liquidity compared to the previous year. It is important to delve deeper into the composition of current assets and liabilities to understand the underlying factors contributing to this downward trend. Additionally, comparing the current ratio to industry benchmarks and historical trends can provide further insights into Avanos Medical Inc's liquidity management and financial health.
Peer comparison
Dec 31, 2023