Avanos Medical Inc (AVNS)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -392,100 | 15,700 | 7,700 | -62,200 | -61,800 | -55,400 | -36,000 | 43,500 | 49,800 | 42,900 | -7,900 | 18,600 | 5,200 | -52,000 | 2,400 | -38,500 | -27,200 | 13,900 | -16,900 | -21,900 |
| Total stockholders’ equity | US$ in thousands | 828,500 | 1,229,700 | 1,222,000 | 1,227,900 | 1,236,300 | 1,222,100 | 1,234,800 | 1,298,700 | 1,291,200 | 1,263,500 | 1,251,600 | 1,256,500 | 1,263,900 | 1,261,900 | 1,296,300 | 1,252,600 | 1,256,500 | 1,289,900 | 1,261,600 | 1,256,500 |
| ROE | -47.33% | 1.28% | 0.63% | -5.07% | -5.00% | -4.53% | -2.92% | 3.35% | 3.86% | 3.40% | -0.63% | 1.48% | 0.41% | -4.12% | 0.19% | -3.07% | -2.16% | 1.08% | -1.34% | -1.74% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-392,100K ÷ $828,500K
= -47.33%
Avanos Medical Inc's return on equity (ROE) has exhibited significant fluctuations over the periods indicated. The ROE was negative in several quarters, indicating that the company's net income was insufficient to generate a positive return for shareholders' equity during those periods.
The ROE improved in the latter part of 2022 and into 2023, reaching positive values, suggesting that Avanos Medical Inc was able to generate a return for shareholders. However, this positive trend was short-lived as the ROE turned negative again by mid-2023 and remained negative in the subsequent quarters.
The sharp decline in ROE to -47.33% in December 2024 is particularly concerning, as it indicates a significant drop in the company's ability to generate returns for its shareholders relative to the equity invested.
Overall, the fluctuating and predominantly negative ROE values suggest that Avanos Medical Inc may be facing challenges in generating sufficient profits relative to its shareholder equity, highlighting potential inefficiencies in the management of the company's assets and liabilities. Further analysis of the company's financial performance and strategic decisions may be warranted to address these ROE fluctuations and improve shareholder value.
Peer comparison
Dec 31, 2024