Amedisys Inc (AMED)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 94,538 156,394 180,772 251,915 219,268
Total assets US$ in thousands 2,138,710 2,060,170 1,976,240 1,856,970 1,567,200
Operating ROA 4.42% 7.59% 9.15% 13.57% 13.99%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $94,538K ÷ $2,138,710K
= 4.42%

Based on the provided data for Amedisys Inc, the operating return on assets (operating ROA) has shown a declining trend over the years.

As of December 31, 2020, the operating ROA was 13.99%, indicating that the company generated approximately 13.99 cents of operating income for every dollar of assets it holds. This was a strong performance.

However, there was a slight decrease in operating ROA to 13.57% by the end of December 31, 2021. Despite the decline, the company still maintained a relatively healthy operating efficiency.

The trend continued with a more significant drop to 9.15% by December 31, 2022, indicating a decrease in operating profitability relative to its asset base. This could suggest potential operational challenges or inefficiencies during that period.

By December 31, 2023, the operating ROA further decreased to 7.59%, reflecting a continued decline in the company's ability to generate operating income from its assets. This trend may indicate a need for strategic operational improvements.

The operating ROA decreased notably to 4.42% by December 31, 2024, marking a substantial decline compared to the initial figures. This decrease could signify a significant challenge in maximizing the operational efficiency and profitability of the company.

In conclusion, the declining trend in Amedisys Inc's operating return on assets suggests a potential challenge in effectively utilizing its assets to generate operating income. Further analysis of the company's operational performance and efficiency strategies may be necessary to address this downward trend.