Amedisys Inc (AMED)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,060,170 | 1,976,240 | 1,856,970 | 1,567,200 | 1,262,740 |
| Total stockholders’ equity | US$ in thousands | 1,066,510 | 1,051,570 | 931,351 | 809,224 | 640,450 |
| Financial leverage ratio | 1.93 | 1.88 | 1.99 | 1.94 | 1.97 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,060,170K ÷ $1,066,510K
= 1.93
Amedisys Inc.'s financial leverage ratio has shown some fluctuation over the past five years. The trend indicates varying levels of financial leverage used by the company to finance its operations and growth.
The financial leverage ratio was 1.93 in 2023, which was higher compared to the previous year's ratio of 1.88. This suggests that the company increased its reliance on debt financing in 2023. However, it is essential to note that the ratio of 1.93 is still within a moderate range, indicating a balanced mix of debt and equity in the company's capital structure.
In 2021, the financial leverage ratio was 1.99, the highest among the five years presented. This implies that in 2021, Amedisys Inc. had a higher proportion of debt relative to equity in its capital structure. A high financial leverage ratio can indicate increased financial risk due to higher debt levels.
Conversely, in 2020 and 2019, the financial leverage ratios were 1.94 and 1.97, respectively, indicating a slightly lower reliance on debt financing compared to 2021.
Overall, Amedisys Inc.'s financial leverage ratio has shown some variability over the past five years, with the company employing different levels of debt in its capital structure. It is crucial for investors and stakeholders to monitor changes in the financial leverage ratio as it can impact the company's risk profile and financial stability.
Peer comparison
Dec 31, 2023