Amedisys Inc (AMED)

Short-term

Turnover ratios

Amedisys Inc's activity ratios show varying trends over the years.

1. Inventory Turnover:
- The inventory turnover ratio has fluctuated significantly, ranging from a high of 100.75 in December 2020 to a low of 33.07 in March 2023.
- A higher inventory turnover indicates that the company is selling goods more efficiently compared to a lower turnover, which may imply inventory management issues.

2. Receivables Turnover:
- The data shows that there is no available information regarding the receivables turnover for the periods provided.
- Receivables turnover ratio measures how efficiently a company is collecting payments from its customers. The absence of this data makes it challenging to assess Amedisys Inc's performance in this area.

3. Payables Turnover:
- Similar to receivables turnover, there is no data available for payables turnover for the specified periods.
- Payables turnover ratio evaluates how effectively a company is managing its outstanding payments to suppliers. The absence of this data limits our ability to evaluate Amedisys Inc's efficiency in managing its payables.

4. Working Capital Turnover:
- The working capital turnover ratio shows a mix of positive and negative values over the years.
- A higher working capital turnover ratio signifies efficient utilization of working capital to generate sales revenue, while a lower ratio may indicate inefficiencies in working capital management.

In conclusion, Amedisys Inc's activity ratios indicate fluctuations in the efficiency of its operations, particularly in managing inventory and working capital. However, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall activity performance.

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Average number of days

Amedisys Inc's activity ratios provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- Amedisys Inc's DOH fluctuated over the periods analyzed, ranging from a low of 3.62 days in December 2020 to a high of 11.04 days in March 2023. This ratio measures how quickly the company sells its inventory. Higher DOH values indicate that the company takes longer to sell its inventory, potentially tying up capital in unsold goods. The significant increase in DOH from June 2022 to March 2023 suggests a potential buildup of inventory.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Amedisys Inc's DSO, which measures how quickly the company collects payments from its customers. A lower DSO indicates quicker collection of receivables and better cash flow management.

3. Number of Days of Payables:
- Similarly, details on Amedisys Inc's number of days of payables are not available in the provided data. This ratio assesses how long the company takes to pay its suppliers. A longer payables period can indicate favorable credit terms with suppliers, potentially benefiting cash flow.

Overall, analyzing these activity ratios can provide valuable insights into Amedisys Inc's operational efficiency, inventory management, and cash flow dynamics.

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Long-term

Amedisys Inc's fixed asset turnover ratio has shown fluctuations over the past few years. The ratio increased steadily from March 31, 2020, to September 30, 2022, indicating that the company was generating more revenue relative to its fixed assets. However, there was a significant drop in the ratio from June 30, 2022, to December 31, 2022, suggesting a potential efficiency issue in utilizing fixed assets during that period. Subsequently, the ratio increased sharply again by March 31, 2023, and fluctuated until December 31, 2023.

In contrast, the total asset turnover ratio fluctuated within a narrower range compared to the fixed asset turnover ratio. The ratio remained relatively stable from March 31, 2020, to June 30, 2022, indicating consistent revenue generation concerning total assets. However, there was a slight decline in the ratio from September 30, 2022, to December 31, 2023, suggesting a potential decrease in revenue generation efficiency during that period.

Overall, analyzing both ratios together can provide insights into how efficiently Amedisys Inc is utilizing its assets to generate revenue over time. Further investigation into the reasons behind the fluctuations in these ratios can help identify areas for improvement in the company's long-term asset management strategies.