Avanos Medical Inc (AVNS)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -396,200 | 4,200 | 74,000 | 8,900 | -46,100 |
| Revenue | US$ in thousands | 687,800 | 673,300 | 820,000 | 744,600 | 714,800 |
| Operating profit margin | -57.60% | 0.62% | 9.02% | 1.20% | -6.45% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-396,200K ÷ $687,800K
= -57.60%
Avanos Medical Inc's operating profit margin has exhibited fluctuating trends over the years based on the provided data. In December 31, 2020, the operating profit margin was at a negative 6.45%, indicating that the company's operating expenses exceeded its operating income. However, there was a significant improvement by December 31, 2022, where the margin increased to 9.02%, showing better operational efficiency and profitability.
During December 31, 2021 and December 31, 2023, the operating profit margin was positive but relatively low at 1.20% and 0.62% respectively. This suggests that the company may have faced challenges in managing its operating expenses to generate substantial operating income.
The data also highlights a concerning performance on December 31, 2024, with an operating profit margin of -57.60%. A negative operating profit margin indicates that the company's operating expenses far exceeded its operating income, raising questions about profitability and operational efficiency during that period.
Overall, it is essential for Avanos Medical Inc to closely monitor and manage its operating expenses to improve its operating profit margin and ensure sustainable profitability in the long term.
Peer comparison
Dec 31, 2024