Avanos Medical Inc (AVNS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,236,300 | 1,291,200 | 1,270,600 | 1,262,100 | 1,272,600 |
| Debt-to-capital ratio | 0.00 | 0.15 | 0.09 | 0.00 | 0.16 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,236,300K)
= 0.00
The debt-to-capital ratio of Avanos Medical Inc has shown fluctuations over the past five years. In 2023, the ratio decreased to 0.12 from 0.15 in 2022, indicating a lower reliance on debt to finance its operations relative to its total capital structure. This suggests improved financial stability and reduced financial risk.
Compared to 2021, the debt-to-capital ratio increased slightly from 0.09 to 0.12 in 2023, reflecting a higher proportion of debt in the company's capital structure. However, when looking at 2020 and 2019, the ratio has decreased from 0.13 in 2020 to 0.16 in 2019, indicating a trend of reducing debt relative to total capital over the years.
Overall, the recent decrease in the debt-to-capital ratio in 2023 is a positive sign for Avanos Medical Inc, suggesting a more balanced and sustainable capital structure. However, monitoring future trends in this ratio will be crucial to assess the company's ongoing debt management and financial health.
Peer comparison
Dec 31, 2023