Avanos Medical Inc (AVNS)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 828,500 | 1,236,300 | 1,291,200 | 1,263,900 | 1,256,500 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $828,500K)
= 0.00
The debt-to-capital ratio of Avanos Medical Inc has remained consistently at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not used debt as a significant source of financing relative to its total capital structure during this period. A debt-to-capital ratio of 0.00 suggests that the company relies more on equity financing rather than debt to fund its operations and expansion, which could be viewed positively by investors and creditors due to lower financial risk associated with debt. However, it may also indicate missed opportunities for leveraging debt financing for potential growth or tax benefits. Overall, a low or zero debt-to-capital ratio reflects the company's conservative approach to capital structure management.
Peer comparison
Dec 31, 2024