Amedisys Inc (AMED)

Cash ratio

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
Cash and cash equivalents US$ in thousands 303,242 245,450 157,358 120,704 145,863 78,112 95,377 49,436 40,540 17,956 26,566 67,834 42,694 124,458 91,646 77,344 81,808 112,904 177,278 174,756
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 514,392 486,021 479,976 484,860 473,721 468,119 462,401 353,050 355,529 367,200 427,372 380,154 374,282 454,349 449,223 456,082 456,337 437,496 442,048 316,106
Cash ratio 0.59 0.51 0.33 0.25 0.31 0.17 0.21 0.14 0.11 0.05 0.06 0.18 0.11 0.27 0.20 0.17 0.18 0.26 0.40 0.55

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 shown fluctuations over the past few years. It started at 0.55 on March 31, 2020, representing a relatively strong position in terms of cash reserves. However, the ratio gradually declined to 0.06 by June 30, 2022, signaling a significant decrease in the company's ability to cover its short-term liabilities with available cash.

Subsequently, the cash ratio recovered to 0.33 by June 30, 2024, indicating an improvement in the company's liquidity position. By the end of December 31, 2024, the cash ratio further increased to 0.59, indicating that Amedisys Inc had a substantial cash reserve compared to its short-term obligations. This upward trend suggests that the company may have implemented strategies to enhance its liquidity position.

Overall, a higher cash ratio implies a stronger ability to meet short-term obligations using cash reserves alone, whereas a lower ratio may raise concerns about liquidity risk. Amedisys Inc's increasing cash ratio in recent periods could be viewed positively by investors and creditors as it signifies a potential improvement in the company's financial health and ability to weather economic uncertainties.