Amedisys Inc (AMED)

Liquidity ratios

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
Current ratio 1.23 1.19 1.16 1.09 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
Quick 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
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

Amedisys Inc's current ratio has shown some fluctuation over the past few years, ranging from a low of 0.79 to a high of 1.23. The current ratio indicates the company's ability to meet its short-term obligations using its current assets. A ratio above 1 implies that the company can cover its current liabilities with its current assets, and Amedisys Inc has generally maintained a current ratio above 1, indicating a healthy liquidity position.

In contrast, the quick ratio, which measures the company's ability to cover its short-term obligations with its most liquid assets, has shown more variability, with values ranging from 0.05 to 0.59. A quick ratio of less than 1 may suggest potential liquidity issues, as it indicates the company may have difficulty meeting its immediate payment obligations without relying on inventory.

Furthermore, the cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, has displayed a similar trend to the quick ratio, ranging from 0.05 to 0.59 over the period. A higher cash ratio indicates that the company has a greater ability to cover its short-term liabilities solely with its cash reserves.

Overall, while Amedisys Inc's current ratio suggests a generally favorable liquidity position, the lower quick and cash ratios at certain points may indicate a need for closer monitoring of its ability to meet short-term obligations without relying on inventory or other less liquid assets.

Additional liquidity measure

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 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

The cash conversion cycle of Amedisys Inc has shown some fluctuations over the past few years. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales, has generally been relatively low, indicating efficient management of working capital.

From March 31, 2020, to June 30, 2022, the cash conversion cycle varied between 3.91 days to 10.93 days, with occasional spikes and dips. This suggests some variability in the company's operating efficiency during this period.

However, in the most recent quarters, specifically from December 31, 2023, to December 31, 2024, the cash conversion cycle saw a significant drop to 0.00 days. A cash conversion cycle of 0.00 days indicates that the company is managing its working capital exceptionally well, possibly through more effective inventory turnover and quick collection from customers.

It is essential for Amedisys Inc to understand the reasons behind this sudden improvement in its cash conversion cycle and ensure that it is not due to unsustainable practices or factors. Monitoring and managing the cash conversion cycle effectively will help the company maintain its financial health and liquidity in the long term.