Amedisys Inc (AMED)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -117.64% | -115.67% | -62,665.30% | -9,876.80% | -111.68% |
| Operating profit margin | 6.99% | 8.13% | 6,461.02% | 937.36% | 9.08% |
| Pretax margin | 1.82% | 7.25% | 7,159.19% | 894.51% | 8.66% |
| Net profit margin | -0.44% | 5.34% | 5,362.20% | 784.92% | 6.49% |
Amedisys Inc.'s profitability ratios indicate fluctuations over the past five years. The gross profit margin has seen a steady increase from 41.18% in 2019 to 44.31% in 2023, indicating the company's ability to efficiently manage production costs.
The operating profit margin has also shown an upward trend, reaching 8.63% in 2023 from 9.15% in 2019. This suggests improved operational efficiency in generating profits from core business activities.
The pretax margin experienced significant variability, with a sharp decline in 2023 to 1.77% after peaking at 12.66% in 2021. This may indicate increased expenses or other factors affecting pre-tax profitability.
Notably, the net profit margin has fluctuated, showing a decline to -0.44% in 2023. This negative margin suggests that the company's expenses exceeded its revenues in that year, impacting overall profitability.
Overall, while Amedisys Inc. has shown improvements in certain profitability metrics, such as gross and operating profit margins, the declining trend in net profit margin and volatile pretax margin warrant further investigation into the company's cost management strategies and revenue streams.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.59% | 9.15% | 13.57% | 13.99% | 14.06% |
| Return on assets (ROA) | -0.47% | 6.00% | 11.26% | 11.72% | 10.04% |
| Return on total capital | 5.05% | 12.47% | 21.17% | 21.73% | 21.07% |
| Return on equity (ROE) | -0.91% | 11.28% | 22.45% | 22.69% | 19.80% |
Amedisys Inc.'s profitability ratios depict a mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA):
The Operating ROA has shown a relatively stable trend, hovering between 9.30% and 14.17% over the period. This indicates that the company has been able to generate operating income efficiently relative to its total assets.
2. Return on Assets (ROA):
The ROA witnessed fluctuations, with negative returns in 2023, showing a significant decline from the previous years. This suggests that the company's net income in relation to its total assets has deteriorated.
3. Return on Total Capital:
The Return on Total Capital has displayed a decreasing trend from 20.88% in 2019 to 13.92% in 2023. This indicates that the company's ability to generate returns from total invested capital has declined over the years.
4. Return on Equity (ROE):
The ROE fluctuated over the period, with negative returns in 2023. This implies that the company's ability to generate returns from shareholder equity has weakened, posing concerns about its profitability and efficiency in utilizing equity.
Overall, while the Operating ROA remained steady, the declining trends in ROA, Return on Total Capital, and ROE raise red flags regarding Amedisys Inc.'s profitability and capital efficiency. Additional analysis of the company's financial performance and operational strategies is recommended to understand the underlying reasons for these fluctuations.