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.
Peer comparison
Dec 31, 2023