Avanos Medical Inc (AVNS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -392,100 | -61,800 | 50,500 | 6,300 | -27,200 |
| Total assets | US$ in thousands | 1,154,200 | 1,692,400 | 1,786,900 | 1,594,600 | 1,672,800 |
| ROA | -33.97% | -3.65% | 2.83% | 0.40% | -1.63% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-392,100K ÷ $1,154,200K
= -33.97%
Based on the data provided for Avanos Medical Inc's Return on Assets (ROA) for the years 2020 to 2024, the trend indicates fluctuating performance. The ROA was negative at -1.63% in 2020, improving to 0.40% in 2021, and further increasing significantly to 2.83% in 2022, reflecting improved asset utilization. However, the ROA deteriorated to -3.65% in 2023 and significantly dropped to -33.97% in 2024, suggesting a sharp decline in profitability relative to the assets employed.
This decreasing trend in ROA over the years highlights the potential challenges Avanos Medical Inc may be facing in generating profits from its assets efficiently. Further investigation into the reasons behind the sharp decline in ROA in 2024 would be warranted to understand the underlying issues affecting the company's profitability and asset management.
Peer comparison
Dec 31, 2024