Avanos Medical has a Cash Ratio of 0.37. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Avanos Medical's Cash Ratio or its related term are showing as below:
AVNS'
s Cash Ratio Range Over the Past 10 Years
Min: 0.17 Med: 0.62 Max: 1.55
Current: 0.37
During the past 13 years, Avanos Medical's highest Cash Ratio was 1.55. The lowest was 0.17. And the median was 0.62.
AVNS's Cash Ratio is ranked worse than 74.37% of 835
companies
in the Medical Devices & Instruments industry
Industry Median: 1.23
vs AVNS: 0.37
Avanos Medical Cash Ratio Historical Data
The historical data trend for Avanos Medical's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Avanos Medical's Cash Ratio
For the Medical Devices subindustry, Avanos Medical's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Avanos Medical's Cash Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Avanos Medical's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Avanos Medical's Cash Ratio falls into.
Avanos Medical Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Avanos Medical's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Avanos Medical (NYSE:AVNS) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Avanos Medical Cash Ratio Related Terms
Thank you for viewing the detailed overview of Avanos Medical's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Avanos Medical (Avanos Medical) Business Description
Avanos Medical Inc is a United States-based company that develops and sells medical devices and related services globally. The firm operates in one segment, medical devices, which primarily sells products related to pain management, IV Therapy, and respiratory and digestive health. The company divides its Medical Devices segment into two franchises: Pain Management and Chronic Care. Pain Management provides non-opioid products for acute and interventional pain, including cold and compression therapy. Chronic Care aims at addressing digestive and respiratory issues with feeding tubes and catheters. Avanos generates most of its revenue from its Chronic Care franchise and in North America.
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