Avanos Medical Inc (AVNS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -403,300 | -7,900 | 65,200 | 5,800 | -60,500 |
| Revenue | US$ in thousands | 687,800 | 673,300 | 820,000 | 744,600 | 714,800 |
| Pretax margin | -58.64% | -1.17% | 7.95% | 0.78% | -8.46% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-403,300K ÷ $687,800K
= -58.64%
The pretax margin of Avanos Medical Inc has shown significant fluctuation over the years. In 2020, the company reported a negative pretax margin of -8.46%, indicating that expenses exceeded its operating income. However, by the end of 2021, Avanos managed to improve its pretax margin to 0.78%, suggesting better cost management and operational efficiency.
In 2022, the pretax margin further improved to 7.95%, indicating that the company was able to generate more operating income relative to its revenue. However, this positive trend was not sustained as by the end of 2023, the pretax margin dropped to -1.17%, signifying a reversal in the company's profitability.
The most concerning observation is the sharp decline in pretax margin to -58.64% by December 31, 2024. This dramatic decrease suggests that Avanos Medical Inc may be facing significant challenges in controlling its costs or generating sufficient revenue to cover its expenses. Further investigation into the reasons behind this steep decline is warranted to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2024