Amedisys Inc (AMED)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 10.71 | 8.62 | 11.04 | 7.30 | 8.84 | 10.93 | 5.97 | 3.97 | 5.92 | 3.91 | 5.02 | 3.62 | 5.43 | 4.33 | 4.89 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10.71 | 8.62 | 11.04 | 7.30 | 8.84 | 10.93 | 5.97 | 3.97 | 5.92 | 3.91 | 5.02 | 3.62 | 5.43 | 4.33 | 4.89 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle (CCC) of Amedisys Inc shows fluctuating trends over the reported periods. During the early quarters, the CCC remained relatively low, indicating efficient management of working capital and cash flows. However, there was an increasing trend observed from June 2022 through March 2023, indicating potential issues with cash flow management or changes in the company's operations.
The spike in the CCC during June 2022 could suggest delays in converting inventory into sales or difficulty collecting receivables. Despite a slight improvement by December 2023, the CCC remained on the higher side compared to previous periods, indicating ongoing challenges in managing cash conversion efficiency.
Amedisys Inc achieved a CCC of 0 days from December 2023 through December 2024, which may not necessarily reflect an ideal scenario. A CCC of 0 days could indicate that the company is paying suppliers before converting its inventory into sales or before collecting receivables, which might impact profitability or liquidity in the long run.
Overall, Amedisys Inc's cash conversion cycle analysis reveals variations in working capital management efficiency over the reporting periods, highlighting the importance of closely monitoring and addressing operational cash flow challenges to maintain sustainable financial health.
Peer comparison
Dec 31, 2024