Avanos Medical Inc (AVNS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -44,800 | 75,200 | 10,600 | -47,300 | -49,000 |
| Long-term debt | US$ in thousands | — | 226,300 | 130,000 | — | 248,100 |
| Total stockholders’ equity | US$ in thousands | 1,236,300 | 1,291,200 | 1,270,600 | 1,262,100 | 1,272,600 |
| Return on total capital | -3.62% | 4.96% | 0.76% | -3.75% | -3.22% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-44,800K ÷ ($—K + $1,236,300K)
= -3.62%
Return on total capital for Avanos Medical Inc has fluctuated over the past five years. In 2023, the return on total capital was 1.25%, a decrease from the previous year's 5.09%. This suggests a decline in the company's ability to generate profits from its total capital investment. The 2023 figure remains below the 5-year average return on total capital. However, it is notable that the return on total capital has shown an improvement compared to 2019 when it was -2.29%. Overall, Avanos Medical Inc should continue monitoring and analyzing the factors affecting its return on total capital to drive sustainable growth and profitability.
Peer comparison
Dec 31, 2023