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.
Peer comparison
Dec 31, 2023