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.