Avanos Medical Inc (AVNS)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	379,700	394,200	365,800	370,900	402,200
Revenue	US$ in thousands	587,500	810,000	741,300	699,300	682,600
Gross profit margin		64.63%	48.67%	49.35%	53.04%	58.92%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $379,700K ÷ $587,500K
= 64.63%

Avanos Medical Inc's gross profit margin has fluctuated over the past five years. In 2023, the gross profit margin increased to 56.39% compared to 54.88% in 2022. This improvement suggests that the company was able to generate more revenue from its core business activities after accounting for the cost of goods sold. However, it is worth noting that the gross profit margin was significantly lower in 2021 at 48.93%, indicating potential challenges in managing production costs or pricing strategies. The gross profit margin was relatively stable in 2020 and 2019 at 52.22% and 57.65%, respectively. Overall, while the recent increase in gross profit margin is positive, further analysis is necessary to understand the factors driving these fluctuations and to assess the company's overall profitability and efficiency in generating profits from its operations.