Amedisys Inc (AMED)

Cash conversion cycle

		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
Cash conversion cycle	days	49.59	52.63	44.37	47.82	48.11	63.88	65.97	93.96	179.05	173.42	6,426.42	3,031.15	176.63	86.77	57.10	46.92	52.36	45.23	43.80	45.92

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 53.56 – 3.97
= 49.59

The cash conversion cycle of Amedisys Inc. has shown some fluctuations over the past few quarters. In Q4 2023, the company's cash conversion cycle was 42.87 days, slightly higher than the previous quarter Q3 2023 which had a cycle of 42.20 days. This indicates that the company took slightly longer to convert its investments in inventory and accounts receivable into cash in Q4 2023.

Compared to earlier quarters in 2023, the cash conversion cycle was relatively longer in Q1 2023 at 36.55 days and shorter in Q2 2023 at 34.40 days. This suggests that the company managed its cash conversion more efficiently in Q2 2023 compared to the surrounding quarters.

Looking back to 2022, the cash conversion cycle fluctuated throughout the year but generally stayed within the range of 36 to 38 days. Notable changes occurred in Q2 2022 with a cycle of 37.59 days, and Q1 2022 with a cycle of 37.45 days.

Overall, Amedisys Inc.'s cash conversion cycle has displayed variations in efficiency over the analyzed quarters, possibly influenced by factors such as inventory management, accounts receivable collection, and payment terms with suppliers and customers. Tracking and analyzing this metric over time can provide insights into the company's working capital management and operational efficiency.