Amedisys Inc (AMED)

Solvency ratios

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
Debt-to-assets ratio 0.18 0.18 0.19 0.19 0.21 0.22 0.22 0.23 0.23 0.22 0.11 0.15 0.13 0.19 0.24 0.26 0.18 0.19 0.22 0.26
Debt-to-capital ratio 0.25 0.26 0.27 0.26 0.29 0.30 0.31 0.31 0.32 0.32 0.17 0.23 0.20 0.28 0.35 0.36 0.27 0.28 0.32 0.37
Debt-to-equity ratio 0.34 0.35 0.37 0.35 0.40 0.44 0.45 0.44 0.46 0.48 0.21 0.29 0.25 0.40 0.54 0.56 0.36 0.38 0.47 0.58
Financial leverage ratio 1.93 1.95 1.97 1.80 1.88 1.95 2.03 1.97 1.99 2.14 1.83 2.00 1.94 2.12 2.28 2.12 1.97 2.01 2.15 2.28

Solvency ratios provide valuable insights into a company's ability to meet its long-term financial obligations. Let's analyze Amedisys Inc.'s solvency ratios over the past eight quarters.

1. Debt-to-assets ratio: Amedisys Inc.'s debt-to-assets ratio has been relatively stable, hovering between 0.19 and 0.23 over the past two years. This indicates that the company has maintained a conservative level of debt in relation to its total assets.

2. Debt-to-capital ratio: The debt-to-capital ratio has shown a slight upward trend, ranging from 0.27 to 0.32 during the same period. This suggests that the company has been increasing its reliance on debt to finance its operations and investments.

3. Debt-to-equity ratio: Amedisys Inc.'s debt-to-equity ratio has fluctuated between 0.37 and 0.46, reflecting a moderate level of debt in relation to shareholders' equity. The upward trend indicates a growing proportion of debt in the company's capital structure.

4. Financial leverage ratio: The financial leverage ratio has also shown variability, ranging from 1.80 to 2.03. This metric indicates the extent to which the company uses debt to support its operations, with higher values suggesting a higher degree of financial risk.

Overall, Amedisys Inc. has maintained a conservative debt position relative to its assets, capital, and equity, with a gradual increase in leverage over the past two years. Investors and stakeholders should continue to monitor these ratios to assess the company's long-term financial stability and risk exposure.

Coverage ratios

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
Interest coverage 2.30 2.83 2.92 6.74 8.25 9.66 12.01 25.00 30.31 33.29 34.10 24.87 19.95 16.92 14.18 12.69 12.66 13.82 15.61 19.15

Amedisys Inc.'s interest coverage ratio has exhibited fluctuating trends over the past eight consecutive quarters. The ratio has consistently remained above the benchmark of 1, indicating that the company's earnings before interest and taxes (EBIT) are sufficiently large to cover its interest expenses.

In Q1 2022, Amedisys Inc. demonstrated a notably high interest coverage ratio of 20.79, which gradually declined over the subsequent quarters. Despite the downward trend, the company's interest coverage ratio in the most recent quarter, Q4 2023, remains healthy at 7.28.

Overall, Amedisys Inc. generally maintains a strong ability to meet its interest obligations, as reflected by its interest coverage ratios over the analyzed periods. However, it is essential for the company to closely monitor and manage its financial position to ensure sustainable coverage of interest expenses in the long term.