Amedisys Inc (AMED)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	2,597,130	2,569,758	2,571,325	2,568,665	2,549,081	2,536,849	2,508,253	2,475,240	2,447,215	2,425,945	2,418,688	2,377,111	2,333,731	2,278,930	2,217,848	2,200,977	2,169,373	2,322,862	2,152,547	1,974,703
Payables	US$ in thousands	28,237	34,555	38,557	40,017	43,735	45,527	43,509	36,621	38,217	41,649	36,668	38,865	42,674	39,037	33,383	31,147	31,259	35,901	35,690	32,797
Payables turnover		91.98	74.37	66.69	64.19	58.28	55.72	57.65	67.59	64.03	58.25	65.96	61.16	54.69	58.38	66.44	70.66	69.40	64.70	60.31	60.21

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,597,130K ÷ $28,237K
= 91.98

The payables turnover of Amedisys Inc. has been gradually increasing over the past eight quarters, indicating that the company is managing its accounts payable more efficiently. This trend suggests that Amedisys is taking fewer days to pay its suppliers or trade payables, which can be a positive sign of liquidity and working capital management.

The most recent payables turnover ratio for Q4 2023 is 44.11, which means that Amedisys is turning over its payables approximately 44 times during the quarter. This indicates a significant improvement in managing its payables compared to the previous quarters.

Overall, the increasing trend in payables turnover ratio reflects enhanced efficiency in managing supplier payments and provides insights into Amedisys' liquidity position and operational effectiveness. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's ability to meet its short-term obligations and effectively manage its working capital.