Amedisys Inc (AMED)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 127,106 180,739 192,621 166,301 156,394 168,623 165,343 175,189 180,772 182,693 200,534 231,028 251,915 265,909 272,450 244,247 219,268 198,668 182,199 177,018
Total assets US$ in thousands 2,138,710 2,139,110 2,117,370 2,089,870 2,060,170 2,027,420 1,982,400 1,946,960 1,976,240 1,982,130 2,000,990 1,908,390 1,856,970 1,937,640 1,599,560 1,573,210 1,567,200 1,602,720 1,645,490 1,440,080
Operating ROA 5.94% 8.45% 9.10% 7.96% 7.59% 8.32% 8.34% 9.00% 9.15% 9.22% 10.02% 12.11% 13.57% 13.72% 17.03% 15.53% 13.99% 12.40% 11.07% 12.29%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $127,106K ÷ $2,138,710K
= 5.94%

Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate operating income relative to its total assets. Looking at the data provided for Amedisys Inc, we can observe fluctuations in the operating ROA over time.

The operating ROA for Amedisys Inc ranged from a high of 17.03% in June 30, 2021, to a low of 5.94% in December 31, 2024. The trend shows a generally decreasing pattern from the peak in mid-2021 to the trough at the end of 2024.

The highest operating ROA indicates that Amedisys Inc was able to efficiently utilize its assets to generate operating income during that period. Conversely, the lowest operating ROA suggests a less efficient use of assets to generate operating profits.

The decreasing trend in operating ROA could be a cause for concern as it may indicate declining profitability relative to the assets employed. It would be important for Amedisys Inc to analyze the reasons behind this trend and take appropriate actions to improve operational efficiency and profitability in the future.

Overall, the analysis of Amedisys Inc's operating return on assets provides valuable insights into the company's operational performance and efficiency in utilizing its assets to generate income.