Avanos Medical Inc (AVNS)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-61,800	50,500	6,300	-29,000	-45,900
Total assets	US$ in thousands	1,692,400	1,786,900	1,603,600	1,672,800	1,799,600
ROA		-3.65%	2.83%	0.39%	-1.73%	-2.55%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-61,800K ÷ $1,692,400K
= -3.65%

Avanos Medical Inc's Return on Assets (ROA) has fluctuated over the past five years. In 2023, the ROA was negative at -3.65%, indicating that the company generated a loss relative to its total assets. This represents a significant decline from the previous year when the ROA was positive at 2.83%.

In 2021, the ROA improved to 0.33%, showing a slight increase in profitability generated from its assets compared to the preceding years. However, in 2020 and 2019, the ROA was negative at -1.63% and -2.55% respectively, indicating that the company struggled to generate sufficient profits relative to its asset base during these periods.

Overall, the negative ROA in 2023 raises concerns about Avanos Medical Inc's ability to efficiently utilize its assets to generate profits. It is important for the company to assess and address the underlying reasons for the negative ROA to improve its financial performance and long-term sustainability.