Avanos Medical Inc (AVNS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 107,700 | 87,700 | 127,700 | 118,500 | 111,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 165,900 | 234,600 | 185,800 | 139,200 | 166,300 |
| Quick ratio | 0.65 | 0.37 | 0.69 | 0.85 | 0.67 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($107,700K
+ $—K
+ $—K)
÷ $165,900K
= 0.65
The quick ratio of Avanos Medical Inc has seen fluctuations over the years, indicating varying levels of liquidity. As of December 31, 2020, the quick ratio stood at 0.67, suggesting that the company may have had difficulties meeting its short-term obligations with its most liquid assets at that time. However, there was an improvement in liquidity by December 31, 2021, with the quick ratio increasing to 0.85, indicating a better ability to cover immediate liabilities.
Subsequently, by December 31, 2022, the quick ratio declined slightly to 0.69, which may indicate a moderate decrease in liquidity compared to the previous year. However, the ratio took a significant drop by December 31, 2023, plummeting to 0.37, possibly signaling potential liquidity challenges or an increase in short-term obligations relative to liquid assets.
It is noteworthy that by December 31, 2024, the quick ratio recovered to 0.65, although still lower than the ratio in 2021 and showing some improvements from the previous year. Overall, the fluctuating trend in the quick ratio of Avanos Medical Inc reflects changes in the company's ability to meet its short-term liabilities using its readily available assets over the specified period.
Peer comparison
Dec 31, 2024