Avanos Medical Inc (AVNS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 226,300 | 130,000 | — | 248,100 |
| Total assets | US$ in thousands | 1,692,400 | 1,786,900 | 1,603,600 | 1,672,800 | 1,799,600 |
| Debt-to-assets ratio | 0.00 | 0.13 | 0.08 | 0.00 | 0.14 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,692,400K
= 0.00
The debt-to-assets ratio of Avanos Medical Inc has fluctuated over the past five years, ranging from 0.08 to 0.14. A lower ratio indicates that the company relies less on debt financing to fund its operations and expansion, which may imply a lower financial risk. Conversely, a higher ratio indicates a higher level of debt relative to assets, which may pose greater financial risk.
In 2023, the debt-to-assets ratio improved to 0.10 from 0.13 in 2022. This decrease suggests that the company may have reduced its debt levels in relation to its total assets, which could indicate a healthier financial position and improved debt management. However, it is important to consider other factors such as the overall economic environment, industry trends, and business strategy when assessing the implications of this ratio.
Peer comparison
Dec 31, 2023