Amedisys Inc (AMED)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,236,380 | 2,223,200 | 3,899 | 23,392 | 1,955,630 |
| Receivables | US$ in thousands | 328,173 | 309,185 | 287,061 | 257,645 | 241,596 |
| Receivables turnover | 6.81 | 7.19 | 0.01 | 0.09 | 8.09 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,236,380K ÷ $328,173K
= 6.81
Amedisys Inc.'s receivables turnover has seen a gradual decline over the past five years. The ratio decreased from 8.23 in 2019 to 7.14 in 2023. This decline indicates that the company is taking longer to collect its accounts receivable, which could suggest potential issues with its credit policy or the collection process. This trend may also indicate a decrease in sales levels in recent years, leading to a slower turnover of receivables.
A lower receivables turnover ratio could indicate that the company is extending credit to customers who may have difficulty paying, potentially increasing the risk of bad debts. It may also imply that Amedisys Inc. is becoming less efficient in collecting payments from customers, which could negatively impact its cash flow and overall financial performance.
Overall, monitoring the trend in receivables turnover is important for assessing a company's liquidity and efficiency in managing its accounts receivable. A declining trend in receivables turnover should prompt further investigation into the company's credit policies, collection practices, and potential impacts on its financial health.
Peer comparison
Dec 31, 2023