Amedisys Inc (AMED)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 126,500 | 40,500 | 42,694 | 81,808 | 30,294 |
| Short-term investments | US$ in thousands | — | 40 | — | — | — |
| Receivables | US$ in thousands | 328,173 | 309,185 | 287,061 | 257,645 | 241,596 |
| Total current liabilities | US$ in thousands | 473,721 | 355,529 | 374,282 | 456,337 | 326,943 |
| Quick ratio | 0.96 | 0.98 | 0.88 | 0.74 | 0.83 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($126,500K
+ $—K
+ $328,173K)
÷ $473,721K
= 0.96
The quick ratio of Amedisys Inc. has shown some variability over the past five years. The ratio stood at 0.87 in 2019 and gradually improved to 1.06 in 2022 before slightly decreasing to 1.02 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has generally strengthened over time.
A quick ratio above 1 suggests that Amedisys Inc. has an adequate level of liquid assets to cover its current liabilities, indicating a healthy liquidity position. This implies that the company has the ability to easily convert its current assets into cash to meet its short-term debt obligations.
It is important to note that while the quick ratio has generally been above 1 in recent years, indicating a good short-term liquidity position, it dipped below this threshold in 2021. This could be an area of concern as it may indicate a temporary decrease in liquidity or an increase in short-term liabilities relative to liquid assets during that particular year.
Overall, the trend of the quick ratio for Amedisys Inc. reflects a generally improving liquidity position, with occasional fluctuations that warrant further investigation to understand the underlying factors driving the changes in the ratio.
Peer comparison
Dec 31, 2023