Avanos Medical Inc (AVNS)
Debt-to-equity 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-equity ratio | 0.00 | 0.18 | 0.10 | 0.00 | 0.19 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,236,300K
= 0.00
The debt-to-equity ratio of Avanos Medical Inc has shown variability over the past five years. In 2023, the ratio stands at 0.14, indicating that the company has $0.14 in debt for every $1 of equity. This suggests that Avanos relies more on equity financing rather than debt financing, which can be perceived positively by investors as it implies lower financial risk.
Comparing this to previous years, we observe fluctuations in the ratio. In 2022, the ratio was slightly higher at 0.18, indicating a slight increase in the proportion of debt relative to equity. However, in 2021, the ratio dropped significantly to 0.10, suggesting that the company had lower debt levels in relation to equity.
Looking further back to 2020 and 2019, the ratios were 0.14 and 0.20 respectively. These figures indicate that while there was an increase in the debt-to-equity ratio from 2019 to 2020, the ratio decreased again by 2021.
Overall, the trend in the debt-to-equity ratio of Avanos Medical Inc reflects a mix of debt and equity financing strategies over the years, with variations in the capital structure. It is important for investors and stakeholders to monitor these changes to assess the company's risk profile and financial health accurately.
Peer comparison
Dec 31, 2023