Amedisys Inc (AMED)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 1,134,540 1,066,510 1,051,570 931,351 809,224
ROE 3.81% -0.91% 11.28% 22.45% 22.69%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $43,231K ÷ $1,134,540K
= 3.81%

Based on the provided data, Amedisys Inc's return on equity (ROE) has shown some fluctuations over the past five years.

As of December 31, 2020, the ROE stood at 22.69%, indicating that for every dollar of shareholder equity invested, the company generated a return of 22.69%.

This figure remained relatively stable in the following year, with a slight decrease to 22.45% by December 31, 2021. A high and consistent ROE typically suggests efficient utilization of equity capital.

However, there was a significant drop in ROE by December 31, 2022, plummeting to 11.28%. This decline could be attributed to various factors such as increased expenses, lower profitability, or changes in the company's capital structure.

The trend worsened in the subsequent years, with the ROE turning negative (-0.91%) by December 31, 2023. A negative ROE implies that the company is not generating returns that exceed its equity, which can be concerning for investors and lenders.

There was a partial recovery in the most recent year, as of December 31, 2024, with the ROE improving to 3.81%. While this indicates a move in the right direction, the return is still relatively low compared to the earlier years.

Overall, the fluctuation in Amedisys Inc's ROE over the years reflects varying levels of profitability and efficiency in utilizing shareholder equity. Investors and analysts may want to delve deeper into the company's financial performance and operations to understand the reasons behind these fluctuations and assess the company's future prospects.