Amedisys Inc (AMED)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — 70.52 86.99 66.86 101.07 83.13 67.07 121.96 182.21 122.34 186.35 144.51 198.35 130.56 160.28 141.61 29.14 219.12 240.32 182.98
Receivables turnover 6.81 6.97 8.00 7.60 7.19 5.53 5.46 3.79 2.00 2.07 0.06 0.12 2.01 4.05 6.05 7.37 8.09 7.42 7.55 7.30
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
Working capital turnover 96.34 — — 42.55 66.50 77.47 — 90.18 — — — — — — 201.15 13.02 82.83 — — —

To begin with, the receivables turnover ratio for Amedisys Inc. has been relatively stable over the past eight quarters, ranging between 6.97 and 8.00. This indicates that the company is efficient in collecting outstanding receivables from customers. A higher receivables turnover ratio suggests that the company is collecting payments quickly, which is a positive sign.

The payables turnover ratio for Amedisys Inc. has shown an increasing trend, escalating from 28.82 in Q4 2022 to 44.11 in Q4 2023. This signifies that the company is taking longer to pay its suppliers, which may indicate a favorable working capital position or improved negotiation terms with vendors.

The working capital turnover ratio provides insight into how effectively the company is utilizing its working capital to generate revenue. Amedisys Inc. has shown fluctuations in this ratio, with significant increases in Q1 2022 and Q4 2023. The surge in Q4 2023 may be a result of improved efficiency in using working capital to support revenue generation.

However, it's important to note that the lack of inventory turnover data limits a comprehensive analysis of Amedisys Inc.'s overall activity ratios. Without this information, it's challenging to evaluate the efficiency of inventory management within the company.

Average number of days

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
Days of inventory on hand (DOH) days — 5.18 4.20 5.46 3.61 4.39 5.44 2.99 2.00 2.98 1.96 2.53 1.84 2.80 2.28 2.58 12.52 1.67 1.52 1.99
Days of sales outstanding (DSO) days 53.56 52.36 45.64 48.05 50.76 66.04 66.86 96.37 182.75 176.70 6,429.99 3,034.59 181.47 90.22 60.31 49.51 45.09 49.21 48.33 49.99
Number of days of payables days 3.97 4.91 5.47 5.69 6.26 6.55 6.33 5.40 5.70 6.27 5.53 5.97 6.67 6.25 5.49 5.17 5.26 5.64 6.05 6.06

Amedisys Inc.'s activity ratios provide insights into how efficiently the company manages its assets and liabilities.

1. Days of Inventory on Hand (DOH): The data for Days of Inventory on Hand is not provided in the table for any of the specified quarters. This ratio typically measures how long it takes for the company to sell its inventory. A lower DOH indicates faster turnover and efficient inventory management.

2. Days of Sales Outstanding (DSO): Amedisys Inc.'s Days of Sales Outstanding have shown some fluctuations over the quarters, ranging from 45.64 days to 52.36 days. This ratio represents the average number of days the company takes to collect revenue after making a sale. A higher DSO indicates slower collections and potential liquidity issues.

3. Number of Days of Payables: Amedisys Inc.'s Number of Days of Payables have also varied, with values ranging from 8.27 days to 13.18 days across the quarters. This ratio indicates the average number of days the company takes to pay its suppliers. A longer payment period may suggest better cash flow management but could also strain supplier relationships if excessively prolonged.

Overall, analyzing these activity ratios helps assess Amedisys Inc.'s efficiency in managing its inventory, collecting receivables, and paying its suppliers. Changes in these ratios over time can provide valuable insights into the company's operational and financial performance.

Long-term

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
Fixed asset turnover 53.44 56.21 61.25 66.99 138.72 96.92 93.42 64.29 31.16 27.83 0.75 1.53 21.85 42.09 60.26 74.78 69.56 63.04 60.82 58.10
Total asset turnover 1.09 1.10 1.12 1.15 1.12 0.84 0.83 0.58 0.31 0.29 0.01 0.02 0.33 0.63 0.92 1.37 1.55 1.56 1.50 1.46

Amedisys Inc.'s long-term activity ratios indicate how efficiently the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how well the company is utilizing its fixed assets to generate revenue. A higher ratio is generally better as it indicates that the company is generating more revenue per dollar of investment in fixed assets. Amedisys Inc.'s fixed asset turnover has shown a decreasing trend from Q1 2022 to Q4 2023, indicating a decline in efficiency in utilizing its fixed assets to generate sales. However, it is important to note that the ratios are relatively high, with values ranging from 53.44 to 138.72, suggesting that Amedisys Inc. is still effectively utilizing its fixed assets to generate revenue.

2. Total Asset Turnover: The total asset turnover ratio reflects how efficiently the company is using all its assets (both tangible and intangible) to generate sales. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of total assets. Amedisys Inc.'s total asset turnover has been relatively stable, fluctuating between 1.09 and 1.16 over the quarters examined. This suggests that the company is consistently utilizing its total assets to generate sales.

Overall, while Amedisys Inc.'s fixed asset turnover has shown a slight decline, its total asset turnover remains relatively stable. This indicates that the company is managing its assets efficiently, albeit with a potential need to focus on optimizing the utilization of its fixed assets for revenue generation.