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.