Amedisys Inc (AMED)
Working capital 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 |
| Total current assets | US$ in thousands | 496,935 | 388,961 | 356,684 | 361,984 | 350,554 |
| Total current liabilities | US$ in thousands | 473,721 | 355,529 | 374,282 | 456,337 | 326,943 |
| Working capital turnover | 96.34 | 66.50 | — | — | 82.83 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,236,380K ÷ ($496,935K – $473,721K)
= 96.34
The working capital turnover ratio for Amedisys Inc. has shown fluctuations over the past five years. In 2023, the ratio significantly improved to 96.34, indicating that the company efficiently utilized its working capital to generate revenue. This increase suggests that Amedisys Inc. effectively managed its current assets and liabilities to support its operations and generate sales.
Comparing this to the previous years, the ratio was lower in 2022 at 66.50, indicating that the company's efficiency in utilizing its working capital to drive revenue was less effective compared to 2023. Unfortunately, data for 2021, 2020, and 2019 was not available, so we cannot make direct comparisons for those years.
Overall, the significant improvement in the working capital turnover ratio from 2022 to 2023 reflects positively on Amedisys Inc.'s ability to efficiently use its working capital to support its operating activities and generate revenue. This efficiency is crucial for the company's financial health and sustainable growth in the long term.
Peer comparison
Dec 31, 2023