Amedisys Inc (AMED)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	125,366	158,580	196,769	183,925	174,018	199,292	178,819	175,189	180,772	184,202	203,977	236,341	258,658	277,545	283,740	251,665	226,009	201,347	184,468	185,218
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,134,540	1,147,760	1,125,200	1,088,180	1,066,510	1,039,910	1,006,780	1,079,120	1,051,570	1,015,740	985,646	966,758	931,351	905,264	874,272	788,153	809,224	756,205	720,851	679,197
Return on total capital		11.05%	13.82%	17.49%	16.90%	16.32%	19.16%	17.76%	16.23%	17.19%	18.13%	20.69%	24.45%	27.77%	30.66%	32.45%	31.93%	27.93%	26.63%	25.59%	27.27%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $125,366K ÷ ($—K + $1,134,540K)
= 11.05%

Amedisys Inc's return on total capital has shown some fluctuations over the past few years. The company experienced a gradual increase from March 2020 to June 2021, with the return ranging from 27.27% to 32.45%. This indicates that Amedisys was effectively generating returns on its total capital during this period.

However, from September 2021 to December 2024, there was a notable decline in the return on total capital, dropping to 11.05% by December 2024. This decreasing trend suggests that Amedisys may have faced challenges in maintaining its previous level of efficiency in utilizing its total capital to generate returns.

It is crucial for Amedisys to closely monitor and address the factors leading to the decline in return on total capital to ensure sustainable profitability and value creation for its stakeholders in the future.