Avanos Medical Inc (AVNS)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-61,800	-55,400	-36,000	44,600	50,500	45,100	-5,900	20,100	6,300	-54,200	400	-41,100	-29,000	13,900	-16,900	-21,900	-45,900	-42,000	-26,300	17,000
Total assets	US$ in thousands	1,692,400	1,724,900	1,666,700	1,734,900	1,786,900	1,775,200	1,752,800	1,766,500	1,603,600	1,597,900	1,683,300	1,648,800	1,672,800	1,799,100	1,755,900	1,763,700	1,799,600	1,807,700	1,783,400	1,834,000
ROA		-3.65%	-3.21%	-2.16%	2.57%	2.83%	2.54%	-0.34%	1.14%	0.39%	-3.39%	0.02%	-2.49%	-1.73%	0.77%	-0.96%	-1.24%	-2.55%	-2.32%	-1.47%	0.93%

December 31, 2023 calculation

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

Avanos Medical Inc's return on assets (ROA) has been fluctuating over the past eight quarters. In Q4 2022, the company had a ROA of 2.83%, which declined to 2.42% in Q3 2022, and further dropped to -0.45% in Q2 2022 before recovering slightly to 1.05% in Q1 2022. The trend reversed in Q1 2023 when the ROA improved significantly to 2.55%. However, this improvement was short-lived as the ROA decreased to -2.12% in Q2 2023 and further declined to -3.17% in Q3 2023 and -3.65% in Q4 2023.

The negative ROA values in the recent quarters indicate that Avanos Medical Inc is not efficiently utilizing its assets to generate profits. Management should closely evaluate the company's asset utilization and profitability to identify areas for improvement.