Amedisys Inc (AMED)

Liquidity ratios

	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
Current ratio	1.05	1.00	0.92	1.15	1.09	1.06	0.92	1.03	0.95	0.95	0.87	0.83	0.79	0.94	1.02	1.48	1.07	0.95	0.88	0.91
Quick ratio	0.96	0.85	0.81	0.97	0.98	0.87	0.78	0.95	0.88	0.88	0.82	0.77	0.74	0.83	0.96	1.40	0.83	0.88	0.81	0.83
Cash ratio	0.27	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	0.09	0.07	0.04	0.04

Amedisys Inc.'s liquidity ratios provide insights into the company's ability to meet short-term obligations. The current ratio, which measures current assets against current liabilities, has fluctuated over the past eight quarters, ranging from as low as 0.92 to as high as 1.15. While the ratio has generally remained above 1, indicating a sufficient level of current assets to cover short-term liabilities, there were periods where the ratio dipped below this threshold, potentially signaling liquidity challenges.

In terms of quick ratio, which excludes inventory from current assets, Amedisys Inc. has also experienced fluctuations, with values ranging from 0.87 to 1.09. This ratio provides a more conservative measure of liquidity as it excludes inventory, which may not be easily convertible into cash. A quick ratio above 1 is generally considered favorable, and Amedisys Inc. has largely maintained this level throughout the quarters analyzed.

The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) relative to current liabilities, has shown improvement over the quarters, with values increasing from 0.16 to 0.36. This indicates that Amedisys Inc. has been strengthening its ability to cover short-term obligations with cash on hand, which is a positive sign for liquidity management.

Overall, the analysis of Amedisys Inc.'s liquidity ratios suggests that the company has generally maintained adequate liquidity levels to meet its short-term obligations, with some fluctuations in specific periods. Continuous monitoring of these ratios is essential to ensure ongoing liquidity and financial stability.

Additional liquidity measure

		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
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

The cash conversion cycle of Amedisys Inc. has shown some variation over the past eight quarters. In Q2 and Q3 of 2023, the company experienced a decrease in the cash conversion cycle to 34.40 days and 42.20 days, respectively. This indicates that the company was able to efficiently convert its investments in inventory and accounts receivable into cash during these quarters.

However, in Q4 2023, there was a slight increase in the cash conversion cycle to 42.87 days, which may imply a delay in converting resources into cash. Compared to the same quarter in the previous year (Q4 2022), the cash conversion cycle has increased, reflecting a potentially less efficient management of cash flows.

Overall, the trend in the cash conversion cycle of Amedisys Inc. shows some volatility, with fluctuations occurring quarter to quarter. It is important for the company to closely monitor and manage its inventory levels and accounts receivable collection processes to ensure optimal cash conversion efficiency.