Avanos Medical Inc (AVNS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,236,300	1,291,200	1,270,600	1,262,100	1,272,600
ROE		-5.00%	3.91%	0.50%	-2.30%	-3.61%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-61,800K ÷ $1,236,300K
= -5.00%

Avanos Medical Inc's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the company reported a negative ROE of -5.00%, indicating that it generated a loss on shareholders' equity for that year. This represents a decline from the previous year's ROE of 3.91%. The positive ROE in 2022 suggests an improvement in the company's profitability and efficiency in generating returns for its shareholders compared to 2021 when the ROE was 0.41%.

However, in 2020 and 2019, Avanos Medical Inc's ROE was negative at -2.16% and -3.63% respectively, indicating that the company's profitability was low or it incurred losses relative to its shareholders' equity during those years. Overall, the negative ROE figures in 2020, 2019, and 2023 raise concerns about the company's ability to generate satisfactory returns for its shareholders. It is essential for Avanos Medical Inc to focus on improving its financial performance and operational efficiency to enhance its ROE in the future.