Amedisys Inc (AMED)

Interest coverage

		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
Interest expense	US$ in thousands	31,274	22,228	9,525	11,038	14,515
Interest coverage		2.30	8.25	30.31	19.96	12.67

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $72,086K ÷ $31,274K
= 2.30

Amedisys Inc.'s interest coverage ratio has shown fluctuations over the past five years. The ratio decreased from 25.70 in 2021 to 7.28 in 2023. Despite the decrease, the company's interest coverage ratio remains above 1, indicating that Amedisys has generated sufficient operating income to cover its interest expenses. The significant drop in the ratio from 2021 to 2023 may indicate a higher burden of interest expenses relative to operating income in 2023. It is essential for investors and creditors to monitor this trend to assess the company's ability to meet its debt obligations in the future.