Amedisys Inc (AMED)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 126,500 | 40,500 | 42,694 | 81,808 | 30,294 |
| Short-term investments | US$ in thousands | — | 40 | — | — | — |
| Total current liabilities | US$ in thousands | 473,721 | 355,529 | 374,282 | 456,337 | 326,943 |
| Cash ratio | 0.27 | 0.11 | 0.11 | 0.18 | 0.09 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($126,500K
+ $—K)
÷ $473,721K
= 0.27
Amedisys Inc.'s cash ratio has shown a generally increasing trend over the past five years, indicating an improved ability to cover its short-term liabilities with cash and cash equivalents. The cash ratio stood at 0.36 as of Dec 31, 2023, up from 0.22 in the previous year and significantly higher compared to 0.14 in Dec 31, 2019. This suggests that the company has become more liquid and better positioned to meet its immediate financial obligations.
A cash ratio of 0.36 means that for every dollar of current liabilities, Amedisys Inc. holds $0.36 in cash and cash equivalents. This indicates a healthy liquidity position, providing a cushion against potential short-term financial risks. It also implies that the company has sufficient liquid assets to cover its short-term obligations without relying heavily on other sources of funding.
The upward trend in the cash ratio over the years reflects well-managed cash flows and effective cash management practices within Amedisys Inc. This trend may indicate prudent financial decision-making and a focus on maintaining a strong financial position.
Overall, the consistent improvement in Amedisys Inc.'s cash ratio suggests a positive liquidity position and a reduced risk of financial distress resulting from cash flow shortages in the short term. However, further analysis of other financial ratios and considerations of the company's overall financial health would provide a more comprehensive understanding of its financial performance.
Peer comparison
Dec 31, 2023