Avanos Medical Inc (AVNS)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 107,700 | 89,000 | 92,200 | 75,800 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 165,900 | 212,900 | 208,200 | 205,200 | 234,600 | 170,700 | 160,500 | 158,500 | 185,800 | 162,300 | 151,100 | 152,900 | 139,200 | 129,200 | 158,300 | 154,600 | 166,300 | 179,400 | 176,000 | 189,400 |
| Quick ratio | 0.65 | 0.42 | 0.44 | 0.37 | 0.37 | 0.63 | 0.51 | 0.60 | 0.69 | 0.72 | 0.70 | 0.68 | 0.85 | 0.76 | 0.63 | 0.65 | 0.67 | 1.00 | 1.05 | 0.99 |
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 for Avanos Medical Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with liquid assets such as cash, marketable securities, and accounts receivable.
The trend in Avanos Medical Inc's quick ratio shows some variability, starting at 0.99 on March 31, 2020, reaching a peak of 1.05 on June 30, 2020, and then declining to 0.37 by December 31, 2023. This suggests a potential liquidity concern as the quick ratio fell below 1, indicating the company may have had difficulty meeting its short-term obligations with its most liquid assets.
However, there was a slight improvement in the quick ratio in the following periods, increasing to 0.65 by March 31, 2024, and further to 0.65 by December 31, 2024. While the quick ratio remained below the desirable level of 1 during these periods, the upward trend may indicate that Avanos Medical Inc was working to enhance its liquidity position.
Overall, the fluctuating quick ratio of Avanos Medical Inc indicates varying levels of liquidity and ability to cover short-term obligations with liquid assets during the period under review. Monitoring this ratio over time is crucial for evaluating the company's financial health and its ability to handle short-term financial obligations effectively.
Peer comparison
Dec 31, 2024