Avanos Medical Inc (AVNS)

Current 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
Total current assets	US$ in thousands	487,000	524,600	506,900	453,800	624,100	470,000	437,100	439,200	427,600	405,000	443,500	447,900	467,200	567,600	517,100	524,100	538,500	546,500	572,500	660,000
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
Current ratio		2.08	3.07	3.16	2.86	3.27	2.90	2.89	2.87	3.07	3.13	2.80	2.90	2.81	3.16	2.94	2.77	2.53	2.51	3.06	2.77

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $487,000K ÷ $234,600K
= 2.08

Avanos Medical Inc's current ratio has exhibited some fluctuations over the past eight quarters, ranging from a low of 2.08 in Q4 2023 to a high of 3.16 in Q2 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger ability to meet short-term obligations.

In general, the company has maintained a current ratio above 2, which is considered a healthy level indicating good short-term financial health. The significant fluctuations in the current ratio suggest varying levels of liquidity and working capital management throughout the quarters.

The company's current ratio peaked in Q2 2023 at 3.16, indicating a strong position to cover its short-term obligations with current assets. However, it declined in the subsequent quarters before rebounding slightly in Q4 2023. It is important for investors and stakeholders to monitor the current ratio over time to assess the company's ability to manage its short-term financial obligations effectively.