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.