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.