Amedisys Inc (AMED)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	72,086	183,382	288,662	220,281	183,851
Long-term debt	US$ in thousands	361,900	419,400	432,100	204,500	232,256
Total stockholders’ equity	US$ in thousands	1,066,510	1,051,570	931,351	809,224	640,450
Return on total capital		5.05%	12.47%	21.17%	21.73%	21.07%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $72,086K ÷ ($361,900K + $1,066,510K)
= 5.05%

Amedisys Inc.'s return on total capital has exhibited a fluctuating trend over the past five years. The return on total capital was 13.92% as of December 31, 2023, which represents an increase compared to the previous year's figure of 12.36%. However, this current level is lower than the returns reported in the prior three years, indicating a potential decline in the company's efficiency in generating returns from its total capital.

The highest return on total capital was observed at 20.88% as of December 31, 2019, followed by 18.84% as of December 31, 2020, and 17.70% as of December 31, 2021. The recent decrease in the return on total capital may warrant further investigation into the factors influencing this metric, such as changes in the company's capital structure, profitability, or asset utilization.

Overall, while the return on total capital for Amedisys Inc. has varied over the past five years, it is essential for stakeholders to closely monitor this metric to assess the company's ability to generate returns relative to the total capital employed.