Avanos Medical Inc (AVNS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.44% | 56.39% | 54.88% | 48.93% | 52.22% |
| Operating profit margin | -57.60% | 0.62% | 9.02% | 1.20% | -6.45% |
| Pretax margin | -58.64% | -1.17% | 7.95% | 0.78% | -8.46% |
| Net profit margin | -57.01% | -9.18% | 6.16% | 0.85% | -3.81% |
Avanos Medical Inc's profitability ratios indicate fluctuations in performance over the years. The gross profit margin showed a decreasing trend from 2020 to 2021 but improved thereafter, reaching its peak in 2023. However, there was a slight decline in 2024. This indicates the company's ability to control production costs and generate profit on sales.
The operating profit margin experienced significant variability, starting from a negative percentage in 2020, gradually increasing until 2022, and then dropping drastically in 2024. This suggests fluctuations in operating efficiency and cost management over the years.
The pretax margin also displayed inconsistency, fluctuating between negative and positive values. The company managed to achieve a positive pretax margin in 2022 but faced significant challenges leading to negative margins in the subsequent years.
The net profit margin, reflecting the company's overall profitability, showcased a mix of positive and negative values. Avanos Medical Inc struggled with profitability in 2020 and 2023, while showing improvement in 2021 and 2022. However, the net profit margin experienced a sharp decline in 2024, indicating challenges in generating bottom-line profit.
Overall, while Avanos Medical Inc's gross profit margin improved over the years, its operating, pretax, and net profit margins displayed significant volatility, highlighting the need for consistent financial performance and cost management strategies to enhance overall profitability and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -34.33% | 0.25% | 4.14% | 0.56% | -2.76% |
| Return on assets (ROA) | -33.97% | -3.65% | 2.83% | 0.40% | -1.63% |
| Return on total capital | -47.21% | 0.36% | 2.84% | -2.33% | -3.57% |
| Return on equity (ROE) | -47.33% | -5.00% | 3.91% | 0.50% | -2.16% |
Avanos Medical Inc's profitability ratios show mixed performance over the years.
- Operating return on assets (Operating ROA): The company's operating return on assets has shown improvement from -2.76% in 2020 to 4.14% in 2022, though it dipped to 0.25% in 2023 before significantly dropping to -34.33% in 2024. This ratio indicates how efficiently the company is generating operating income from its assets.
- Return on assets (ROA): Avanos Medical's return on assets fluctuated from -1.63% in 2020 to 2.83% in 2022, but then declined to -33.97% in 2024. ROA measures the company's ability to generate profit relative to its total assets, with negative values indicating net loss.
- Return on total capital: The return on total capital saw variations, ranging from -3.57% in 2020 to 2.84% in 2022, but later dropped to -47.21% in 2024. This ratio evaluates the efficiency of the company in generating profit from the total capital invested in the business.
- Return on equity (ROE): Avanos Medical's return on equity improved from -2.16% in 2020 to 3.91% in 2022, yet it turned negative with -5.00% in 2023 and dropped significantly to -47.33% in 2024. ROE assesses how well the company is utilizing shareholders' equity to generate profit.
Overall, while the company demonstrated some improvement in profitability metrics between 2020 and 2022, there was a notable decline in performance in 2023 and a sharp deterioration in 2024, indicating challenges in effectively utilizing assets and capital to generate returns for the shareholders.