Avanos Medical Inc (AVNS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | 0.00 | 0.00 | 0.00 | 0.08 | 0.09 | 0.10 | 0.11 | 0.11 | 0.00 | 0.00 | 0.00 | 0.14 | 0.14 | 0.14 | 0.14 |
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.18 | 0.00 | 0.00 | 0.00 | 0.10 | 0.11 | 0.13 | 0.14 | 0.14 | 0.00 | 0.00 | 0.00 | 0.19 | 0.20 | 0.19 | 0.19 |
| Financial leverage ratio | 1.37 | 1.41 | 1.35 | 1.34 | 1.38 | 1.40 | 1.39 | 1.40 | 1.26 | 1.26 | 1.29 | 1.31 | 1.33 | 1.39 | 1.39 | 1.40 | 1.41 | 1.43 | 1.40 | 1.43 |
The solvency ratios of Avanos Medical Inc show a consistent and stable trend over the past eight quarters.
The Debt-to-assets ratio has been relatively low and stable, ranging between 0.10 and 0.15. This indicates that, on average, only around 10% to 15% of Avanos Medical's total assets have been financed by debt.
Similarly, the Debt-to-capital ratio has also shown a relatively low and consistent trend, fluctuating between 0.12 and 0.18. This suggests that debt accounts for approximately 12% to 18% of Avanos Medical's total capital structure.
The Debt-to-equity ratio, which measures the proportion of debt financing to equity, has showcased a similar pattern, varying between 0.14 and 0.22. This signifies that debt represents around 14% to 22% of the company's equity.
The Financial leverage ratio, which shows the extent to which the company is using debt to finance its assets, has remained relatively stable between 1.34 and 1.41. This indicates that the company's assets are funded roughly 1.34 to 1.41 times by debt compared to equity.
Overall, Avanos Medical Inc's solvency ratios reflect a prudent and conservative approach to financing, with a balanced mix of debt and equity. The company's consistent performance in maintaining low debt ratios suggests a strong financial position and ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -2.89 | -1.44 | -0.81 | 5.98 | 7.84 | 9.27 | 10.21 | 8.58 | 3.21 | -11.98 | -7.70 | -5.12 | -3.03 | -0.14 | -1.18 | -1.63 | -3.27 | -3.68 | -1.76 | 1.25 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio is generally considered favorable as it suggests that the company is generating sufficient operating income to cover its interest expenses.
Analyzing the interest coverage of Avanos Medical Inc over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023, the interest coverage ratio was 1.45, indicating that the company's operating income was able to cover its interest payments 1.45 times. This may raise some concerns about the company's ability to meet its interest obligations from its operating income alone.
However, in the previous quarters, the interest coverage ratio was higher, with ratios of 3.33, 4.57, and 6.87 in Q3, Q2, and Q1 2023, respectively, suggesting a stronger ability to cover interest expenses. Looking further back to Q4 2022, the interest coverage ratio was substantially higher at 8.81, indicating a robust performance in meeting interest payments.
Overall, while there have been fluctuations in Avanos Medical Inc's interest coverage ratio, with some quarters showing lower coverage than others, the company has generally demonstrated a good ability to meet its interest obligations. It would be important to monitor future trends to ensure the company's ongoing ability to service its debt.