Avanos Medical Inc (AVNS)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -61,800 | -55,400 | -36,000 | 44,600 | 50,500 | 45,100 | -5,900 | 20,100 | 6,300 | -54,200 | 400 | -41,100 | -29,000 | 13,900 | -16,900 | -21,900 | -45,900 | -42,000 | -26,300 | 17,000 |
| Revenue (ttm) | US$ in thousands | 619,900 | 735,200 | 767,700 | 802,100 | 810,000 | 788,200 | 772,300 | 757,500 | 741,300 | 731,000 | 729,200 | 703,100 | 699,300 | 702,400 | 688,900 | 698,200 | 682,600 | 663,500 | 656,500 | 638,800 |
| Net profit margin | -9.97% | -7.54% | -4.69% | 5.56% | 6.23% | 5.72% | -0.76% | 2.65% | 0.85% | -7.41% | 0.05% | -5.85% | -4.15% | 1.98% | -2.45% | -3.14% | -6.72% | -6.33% | -4.01% | 2.66% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-61,800K ÷ $619,900K
= -9.97%
Net profit margin is a key financial ratio that indicates the percentage of revenue that translates into profit after all expenses have been deducted. Looking at the trend in Avanos Medical Inc's net profit margin over the past eight quarters, we observe fluctuations in the company's ability to generate profits effectively.
In Q4 2023, Avanos reported a net profit margin of -9.18%, indicating that the company incurred a loss equivalent to 9.18% of its total revenue for that quarter. This represents a significant decline in profitability compared to the previous quarter where the net profit margin was -7.29%.
Throughout 2023, the net profit margin has been gradually deteriorating, with negative margins recorded in Q4 and Q3. This suggests that the company's expenses may be outpacing its revenue generation, leading to reduced profitability. The drastic decline in the net profit margin from positive figures in Q1 2023 to negative figures in Q4 2023 raises concerns about the company's financial performance and management of costs.
In contrast, looking back at Q2 and Q1 of 2022, Avanos exhibited positive net profit margins of -1.02% and 2.44%, respectively. Although these margins were relatively low, they indicated that the company was able to generate profits after considering all its expenses.
Overall, the trend in Avanos Medical Inc's net profit margin shows a concerning decline in profitability over recent quarters, highlighting the need for the company to address its cost structure and potentially explore revenue-generating opportunities to improve its financial performance.
Peer comparison
Dec 31, 2023