Avanos Medical Inc (AVNS)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.39 | 1.35 | 1.36 | 1.35 | 1.37 | 1.41 | 1.35 | 1.34 | 1.38 | 1.40 | 1.40 | 1.41 | 1.26 | 1.27 | 1.30 | 1.32 | 1.33 | 1.39 | 1.39 | 1.40 |
The solvency ratios of Avanos Medical Inc indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity.
- The Debt-to-assets ratio has remained at 0.00 throughout the reporting periods, suggesting that the company operates with minimal debt in relation to its total assets, which is a positive sign for creditors and investors.
- Similarly, the Debt-to-capital ratio has also maintained a consistent 0.00 across all periods, indicating that the company's debt levels are negligible when compared to its total capital, highlighting a low risk of financial distress.
- The Debt-to-equity ratio has also remained at 0.00 consistently, illustrating that Avanos Medical Inc relies more on equity financing rather than debt financing, which indicates a strong financial foundation and lower risk exposure.
- The Financial leverage ratio, which measures the company's total assets relative to its equity, has shown relatively stable values around 1.35 to 1.41. These values suggest that the company's assets are primarily financed by equity rather than debt, indicating a conservative financial structure.
Overall, Avanos Medical Inc's solvency ratios demonstrate a prudent financial management approach, with a focus on maintaining a healthy balance between debt and equity to ensure long-term stability and sustainability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -31.62 | 3.99 | 2.82 | 1.88 | 0.93 | 1.50 | 2.53 | 3.68 | 6.02 | 7.57 | 9.29 | 8.84 | 3.64 | -10.89 | -7.39 | -4.84 | -2.88 | -0.14 | -1.18 | -1.63 |
Avanos Medical Inc's interest coverage ratio fluctuated significantly over the period provided. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt. A ratio below 1 indicates that the company is not generating enough earnings to cover its interest obligations.
From March 31, 2020, to December 31, 2021, Avanos had negative interest coverage ratios, signaling financial distress and insufficient earnings to cover interest expenses. The situation improved drastically by March 31, 2022, with a sizable interest coverage ratio of 8.84, indicating a significant improvement in the company's ability to meet interest payments.
The trend continued positively through June 30, 2024, with interest coverage ratios consistently above 1, signifying an improvement in the company's financial health. However, the ratio sharply declined to a negative value of -31.62 by December 31, 2024, indicating a potential deterioration in the company's ability to cover its interest expenses.
In conclusion, Avanos Medical Inc's interest coverage ratio exhibited volatility over the period, reflecting both financial challenges and improvements in the company's ability to meet its interest obligations. Further monitoring of the ratio is advisable to assess the company's financial stability and debt servicing capabilities.