Avanos Medical Inc (AVNS)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	226,300	—	—	—	130,000	145,000	165,000	175,000	180,000	—	—	—	248,100	247,900	247,800	247,900
Total stockholders’ equity	US$ in thousands	1,236,300	1,222,100	1,234,800	1,298,700	1,291,200	1,263,500	1,259,000	1,262,800	1,270,600	1,267,100	1,301,700	1,257,400	1,262,100	1,289,900	1,261,600	1,256,500	1,272,600	1,266,900	1,276,900	1,280,100
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.15	0.00	0.00	0.00	0.09	0.10	0.11	0.12	0.12	0.00	0.00	0.00	0.16	0.16	0.16	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 relatively stable levels over the past eight quarters, ranging from 0.12 to 0.18. This ratio represents the proportion of a company's capital that is financed by debt, with lower ratios indicating a lower reliance on debt for funding operations. Avanos Medical Inc's decreasing trend from 0.18 in Q3 2023 to 0.12 in Q4 2023 suggests a decreasing reliance on debt in their capital structure, which can be seen as positive in terms of financial health and risk management. Overall, the company appears to maintain a conservative approach towards debt financing, which could potentially provide stability and flexibility in managing financial obligations and investments.