Amedisys Inc (AMED)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 49.98 | 91.83 | 100.75 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 19.95 | 96.34 | 66.50 | — | — |
Based on the provided data, let's analyze the activity ratios of Amedisys Inc for the years ending December 31, 2020 to December 31, 2024:
1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.
- In 2020, Amedisys had a high inventory turnover of 100.75, indicating efficient management of its inventory.
- The ratio decreased in the following years to 91.83 in 2021, 49.98 in 2022, and data is unavailable for 2023 and 2024.
- The declining trend suggests a potential decrease in sales relative to inventory levels, which could indicate inefficiencies in inventory management.
2. Receivables Turnover:
- Receivables turnover measures how effectively a company is managing its receivables by collecting payments from customers.
- Data for receivables turnover is unavailable for all years, reflecting the absence of specific information to evaluate Amedisys's collection efficiency.
3. Payables Turnover:
- Payables turnover ratio indicates how quickly a company pays its suppliers or creditors.
- The data provided does not include information on payables turnover for any year, making it challenging to assess Amedisys's payment practices.
4. Working Capital Turnover:
- Working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales.
- Amedisys had a working capital turnover of 66.50 in 2022, showing that the company generated $66.50 in revenue for every dollar of working capital invested.
- The ratio improved in 2023 to 96.34, indicating increased efficiency in utilizing working capital.
- However, the ratio declined significantly to 19.95 in 2024, suggesting a potential decrease in sales relative to working capital, which may raise concerns about optimal utilization of resources.
In conclusion, the analysis of Amedisys Inc's activity ratios reveals varying trends in inventory turnover and working capital turnover, while data limitations hinder a comprehensive assessment of receivables and payables turnover. Monitoring these ratios can provide insights into the company's operational efficiency and financial health.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 7.30 | 3.97 | 3.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios of Amedisys Inc for the provided years are as follows:
1. Days of Inventory on Hand (DOH):
- At December 31, 2020: 3.62 days
- At December 31, 2021: 3.97 days
- At December 31, 2022: 7.30 days
- At December 31, 2023: Not provided
- At December 31, 2024: Not provided
The Days of Inventory on Hand ratio measures how many days it takes a company to sell its inventory. A higher number indicates that the company holds its inventory for a longer period before selling it. The increase from 2021 to 2022 may suggest either slower inventory turnover or an increase in inventory levels, which could tie up capital.
2. Days of Sales Outstanding (DSO):
- At December 31, 2020: Not provided
- At December 31, 2021: Not provided
- At December 31, 2022: Not provided
- At December 31, 2023: Not provided
- At December 31, 2024: Not provided
The Days of Sales Outstanding ratio calculates the average number of days it takes for a company to collect payment after making a sale. Without data provided for this ratio, it is challenging to assess Amedisys Inc's efficiency in collecting its receivables.
3. Number of Days of Payables:
- At December 31, 2020: Not provided
- At December 31, 2021: Not provided
- At December 31, 2022: Not provided
- At December 31, 2023: Not provided
- At December 31, 2024: Not provided
The Number of Days of Payables ratio indicates the average number of days it takes for a company to pay its suppliers. Lack of data for this ratio makes it difficult to evaluate Amedisys Inc's payment practices and liquidity management.
In conclusion, based on the data provided, Amedisys Inc's inventory turnover has increased over the years, but further insights are needed to assess its collection and payment efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 138.72 | 18.50 | 87.34 |
| Total asset turnover | 1.10 | 1.09 | 1.12 | 1.19 | 1.32 |
Amedisys Inc's fixed asset turnover ratio shows a significant fluctuation over the years, from 87.34 in 2020 to 18.50 in 2021, then sharply increasing to 138.72 in 2022. However, subsequent data for 2023 and 2024 is not available. The substantial changes in fixed asset turnover indicate varying levels of efficiency in utilizing fixed assets to generate sales revenue during these periods.
In contrast, the total asset turnover ratio indicates a consistent trend of declining efficiency in utilizing total assets to generate sales revenue over the years, decreasing from 1.32 in 2020 to 1.19 in 2021, and further to 1.12 in 2022, 1.09 in 2023, and 1.10 in 2024. This declining trend suggests a decreasing ability of the company to generate sales relative to its total asset base.
Overall, the analysis of Amedisys Inc's long-term activity ratios reflects varying efficiency levels in utilizing fixed assets for revenue generation and a diminishing trend in utilizing total assets for generating sales revenue over the years.