Amedisys Inc (AMED)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	72,086	81,640	75,350	179,082	183,382	185,805	204,250	265,668	288,662	302,874	308,878	245,708	220,230	198,461	181,787	182,670	183,818	179,575	174,994	172,690
Long-term debt	US$ in thousands	361,900	366,900	369,900	373,200	419,400	443,400	442,400	429,500	432,100	434,800	179,400	231,400	204,500	300,600	392,700	379,900	232,256	231,600	266,500	303,700
Total stockholders’ equity	US$ in thousands	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	640,450	602,564	561,781	520,246
Return on total capital		5.05%	5.80%	5.47%	12.33%	12.47%	12.73%	14.30%	19.03%	21.17%	22.60%	29.31%	24.10%	21.72%	18.78%	16.32%	17.25%	21.06%	21.53%	21.13%	20.96%

December 31, 2023 calculation

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

The return on total capital for Amedisys Inc. has shown some fluctuations over the past eight quarters. From Q1 2022 to Q2 2022, there was a notable increase from 12.15% to 15.63%, indicating improved efficiency in generating profits from the total capital employed. However, the ratio dropped in the following quarters, reaching its lowest point at 11.75% in Q3 2022.

Subsequently, there was a slight recovery in Q4 2022 to 12.36%, followed by a continuous upward trend in 2023, with the ratio fluctuating between 12.58% and 13.92%. Overall, the return on total capital for Amedisys Inc. has remained relatively stable above 12% in recent quarters, suggesting that the company has been effectively utilizing its total capital to generate returns for its stakeholders.