Amedisys Inc (AMED)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,597,050 | 2,548,900 | 2,447,220 | 2,333,770 | 2,169,450 |
| Payables | US$ in thousands | 28,237 | 43,735 | 38,217 | 42,674 | 31,259 |
| Payables turnover | 91.97 | 58.28 | 64.03 | 54.69 | 69.40 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,597,050K ÷ $28,237K
= 91.97
The payables turnover ratio for Amedisys Inc. has shown fluctuations over the past five years. In 2023, the payables turnover ratio increased significantly to 44.11, indicating that the company is paying its suppliers more frequently during the year compared to the previous years. This may suggest improved efficiency in managing its accounts payable.
In 2022, the payables turnover ratio was 28.82, lower than in 2021 but higher than in 2020. This decrease in 2022 could indicate that the company took longer to pay its suppliers compared to the previous year, which may have been a strategic decision to manage cash flow or negotiations with suppliers.
In 2021, the payables turnover ratio was 32.27, showing a slight increase from 2020. This indicates that the company was able to pay its suppliers more frequently during the year, possibly benefiting from improved working capital management practices.
In 2020, the payables turnover ratio was 27.78, lower than in 2019. This suggests that the company took longer to pay its suppliers in 2020 compared to the previous year, which could indicate challenges in managing cash flow or negotiating payment terms.
In 2019, the payables turnover ratio was 36.80, the highest among the five years analyzed. This indicates that the company was efficient in managing its accounts payable that year, paying its suppliers more frequently.
Overall, the trend in Amedisys Inc.'s payables turnover ratio indicates fluctuations in the company's payment practices over the years, with variations in the speed of paying its suppliers. Investors and stakeholders may want to further analyze the reasons behind these fluctuations to better understand the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2023