Amedisys Inc (AMED)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.34% | 44.31% | 43.31% | 44.30% | 42.78% |
| Operating profit margin | 4.03% | 6.99% | 8.13% | 11.38% | 10.58% |
| Pretax margin | 3.67% | 1.77% | 7.21% | 12.66% | 10.18% |
| Net profit margin | 1.84% | -0.44% | 5.34% | 9.44% | 8.86% |
Amedisys Inc's profitability ratios show fluctuating trends over the past five years. The Gross Profit Margin has increased from 42.78% in December 2020 to 44.30% in December 2021, before stabilizing around 43% in subsequent years.
However, the Operating Profit Margin has shown a decline from 10.58% in December 2020 to 4.03% in December 2024, indicating a decreasing trend in operating efficiency and profitability.
Similarly, the Pretax Margin fluctuated significantly, with a peak of 12.66% in December 2021 followed by a sharp decline to 1.77% in December 2023, before slightly recovering to 3.67% in December 2024.
The Net Profit Margin also experienced volatility, increasing slightly from 8.86% in December 2020 to 9.44% in December 2021, but then sharply declining to -0.44% in December 2023 due to negative profitability, and recovering to 1.84% in December 2024.
Overall, Amedisys Inc's profitability performance has been mixed, with improvements in gross profit margin, but declines in operating, pretax, and net profit margins, indicating challenges in maintaining profitability and operational efficiency over the five-year period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.42% | 7.59% | 9.15% | 13.57% | 13.99% |
| Return on assets (ROA) | 2.02% | -0.47% | 6.00% | 11.26% | 11.72% |
| Return on total capital | 4.89% | 18.10% | 17.35% | 31.11% | 27.42% |
| Return on equity (ROE) | 3.81% | -0.91% | 11.28% | 22.45% | 22.69% |
Amedisys Inc's profitability ratios have shown a fluctuating trend over the years.
1. Operating return on assets (Operating ROA) has slightly decreased from 13.99% in 2020 to 4.42% in 2024, indicating a decline in the company's ability to generate profits from its assets through operations.
2. Return on assets (ROA) saw a decrease from 11.72% in 2020 to -0.47% in 2023, before recovering to 2.02% in 2024. This suggests that the company faced challenges in generating profits from its total assets, particularly in 2023, but managed a modest improvement in 2024.
3. Return on total capital indicates the return generated from all capital invested, with a decline from 27.42% in 2020 to 4.89% in 2024. This decline signals a decrease in the overall efficiency of the capital investments in generating returns.
4. Return on equity (ROE) declined from 22.69% in 2020 to 3.81% in 2024. The negative ROE of -0.91% in 2023 indicates that the company's net income was insufficient to cover its shareholders' equity, which is a concerning sign for investors.
Overall, Amedisys Inc's profitability ratios show a downward trend over the years, indicating challenges in efficiently utilizing assets, capital, and equity to generate profits. Reviewing the reasons behind these declines and implementing strategies to improve profitability can be crucial for the company's financial health and long-term sustainability.