Avanos Medical Inc (AVNS)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	381,300	380,700	383,300	385,500	395,200	414,700	429,300	446,400	449,100	429,100	409,400	380,200	364,300	356,300	361,700	362,500	373,300	394,100	393,300	405,500
Revenue (ttm)	US$ in thousands	687,800	681,500	682,400	680,100	705,700	749,900	780,700	814,300	820,000	795,900	777,900	761,300	744,600	736,200	737,800	715,100	714,800	719,600	705,300	713,800
Gross profit margin		55.44%	55.86%	56.17%	56.68%	56.00%	55.30%	54.99%	54.82%	54.77%	53.91%	52.63%	49.94%	48.93%	48.40%	49.02%	50.69%	52.22%	54.77%	55.76%	56.81%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $381,300K ÷ $687,800K
= 55.44%

Avanos Medical Inc has shown fluctuations in its gross profit margin over the past few years. The gross profit margin is a key financial metric that indicates the percentage of revenue that exceeds the cost of goods sold.

From March 31, 2020, to December 31, 2021, the company experienced a gradual decline in its gross profit margin from 56.81% to 48.93%. This could indicate pricing pressures, increased production costs, or inefficiencies in managing costs during this period.

However, from March 31, 2022, onwards, Avanos Medical Inc managed to reverse this trend with its gross profit margin improving to 56.00% by December 31, 2023. This improvement suggests that the company may have implemented cost-cutting measures, improved operational efficiencies, or achieved better pricing strategies.

Overall, the company's gross profit margin has demonstrated resilience and recovery, stabilizing within the range of 55% to 56% towards the end of 2024. This indicates that Avanos Medical Inc has been able to effectively manage its production costs and maintain healthy profitability levels in recent periods.