Avanos Medical Inc (AVNS)

Quick 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
Cash	US$ in thousands	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	205,300	214,400	288,100	348,300
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	142,800	145,200	152,300	142,700	167,900	146,200	145,400	161,600	131,200	132,900	168,800	168,500	167,900	182,300	137,800	188,500	163,800	157,700	124,300	135,000
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
Quick ratio		0.98	1.48	1.46	1.50	1.55	1.62	1.67	1.74	1.79	1.79	1.70	1.74	1.68	2.02	1.83	1.99	1.74	1.71	2.21	2.03

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($87,700K + $—K + $142,800K) ÷ $234,600K
= 0.98

The quick ratio of Avanos Medical Inc has been relatively stable over the past eight quarters, ranging from 1.11 to 1.84. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

The trend of the quick ratio shows a slight decline over the past two years, with the ratio decreasing from 1.84 in Q1 2022 to 1.11 in Q4 2023. This may suggest a potential decrease in Avanos Medical Inc's liquidity and ability to quickly cover its short-term liabilities.

It is important for investors and analysts to monitor changes in the quick ratio over time to assess the company's liquidity position and ability to manage its short-term financial obligations effectively. A declining trend in the quick ratio may raise concerns about the company's ability to meet its short-term obligations in the future.