Avanos Medical Inc (AVNS)

Operating 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
Operating income (ttm)	US$ in thousands	12,900	56,800	68,400	80,600	86,600	58,500	49,100	31,700	10,700	-63,500	-67,000	-61,500	-48,500	-4,500	-22,500	-30,500	-55,700	-60,800	-35,700	-17,100
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
Operating profit margin		2.08%	7.73%	8.91%	10.05%	10.69%	7.42%	6.36%	4.18%	1.44%	-8.69%	-9.19%	-8.75%	-6.94%	-0.64%	-3.27%	-4.37%	-8.16%	-9.16%	-5.44%	-2.68%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $12,900K ÷ $619,900K
= 2.08%

Operating profit margin is a key financial metric that reflects a company's efficiency in generating profit from its core operations. Avanos Medical Inc's operating profit margin has shown some fluctuations over the past eight quarters.

In Q4 2023, the operating profit margin decreased to 2.60% from 5.37% in the previous quarter. This decline may indicate challenges in controlling operating expenses or optimizing revenue generation during that period.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), there was a significant decrease from 9.45% to 2.60%. This notable decline suggests a substantial decrease in profitability relative to the same period a year ago.

Overall, Avanos Medical Inc's operating profit margin has displayed variability in recent quarters, with some quarters showing stronger performance than others. It is important for the company to carefully manage its operating expenses and revenue streams to maintain a healthy operating profit margin and ensure sustainable profitability in the long run.