Amedisys Inc (AMED)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 303,242 126,450 40,540 42,694 81,808
Short-term investments US$ in thousands — 0 — — —
Total current liabilities US$ in thousands 514,392 473,721 355,529 374,282 456,337
Cash ratio 0.59 0.27 0.11 0.11 0.18

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($303,242K + $—K) ÷ $514,392K
= 0.59

The cash ratio of Amedisys Inc has displayed some fluctuations over the years. As of December 31, 2020, the cash ratio stood at 0.18, indicating that the company had $0.18 in cash and cash equivalents for every dollar of current liabilities.

However, by December 31, 2021, the cash ratio decreased to 0.11, signaling a decrease in the company's ability to cover its short-term obligations solely from its cash reserves. This trend persisted through December 31, 2022, with the cash ratio remaining at 0.11.

By the end of December 31, 2023, there was a notable improvement in the cash ratio, jumping to 0.27. This suggests that the company had increased its liquidity position, having $0.27 in cash and cash equivalents for every dollar of current liabilities.

The most significant increase in the cash ratio was observed by December 31, 2024, where the ratio surged to 0.59. This substantial improvement indicates a strengthened liquidity position, with the company having $0.59 in cash and cash equivalents for every dollar of current liabilities.

Overall, fluctuations in the cash ratio should be closely monitored as they reflect changes in the company's ability to meet its short-term obligations using its available cash resources.