Avanos Medical Inc (AVNS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 828,500 | 1,236,300 | 1,291,200 | 1,263,900 | 1,256,500 |
| ROE | -47.33% | -5.00% | 3.91% | 0.50% | -2.16% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-392,100K ÷ $828,500K
= -47.33%
Avanos Medical Inc's return on equity (ROE) has shown fluctuating trends over the years. In 2020, the company reported a negative ROE of -2.16%, indicating that it experienced a loss relative to shareholder equity. However, there was a slight improvement in 2021, with ROE increasing to 0.50%, although it was still relatively low.
The year 2022 saw a more significant improvement in ROE, reaching 3.91%, reflecting better utilization of shareholder equity to generate profits. However, this trend reversed in 2023, as the ROE dropped to -5.00%, indicating a decline in profitability relative to equity.
The most significant decrease in ROE was observed in 2024, plummeting to -47.33%. This sharp decline suggests that Avanos Medical Inc faced substantial challenges in generating profits compared to the equity invested by shareholders.
Overall, Avanos Medical Inc's ROE performance has been volatile, with fluctuations indicating varying levels of profitability and efficiency in utilizing shareholder equity. Additional analysis is needed to understand the factors contributing to these fluctuations and to assess the company's overall financial health and strategic direction.
Peer comparison
Dec 31, 2024