Amedisys Inc (AMED)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 43,231 -9,747 118,609 209,072 183,608
Total assets US$ in thousands 2,138,710 2,060,170 1,976,240 1,856,970 1,567,200
ROA 2.02% -0.47% 6.00% 11.26% 11.72%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $43,231K ÷ $2,138,710K
= 2.02%

Amedisys Inc's Return on Assets (ROA) has displayed some fluctuations over the years based on the provided data. As of December 31, 2020, the ROA stood at a healthy 11.72%, indicating that the company generated $0.1172 in profit for every dollar of assets it owns. The ROA slightly decreased to 11.26% by December 31, 2021, but remained at a commendable level.

However, there was a noticeable decline in ROA to 6.00% by December 31, 2022, signaling a potential decrease in the company's ability to generate profits from its assets efficiently. This trend continued as the ROA further dropped into negative territory, standing at -0.47% by December 31, 2023. A negative ROA suggests that the company is operating at a loss relative to its asset base.

Fortunately, there seems to be a modest improvement in ROA by December 31, 2024, reaching 2.02%. While this is a positive sign compared to the previous year, the ROA still remains significantly below the levels seen in the earlier years.

Overall, Amedisys Inc's ROA trend indicates some instability and variability in how effectively the company is utilizing its assets to generate profits. It is essential for investors and stakeholders to closely monitor these fluctuations and assess the company's operational efficiency and financial health.