Addus HomeCare Corporation (ADUS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 967,708 | 883,557 | 798,563 | 720,268 | 613,696 |
| Payables | US$ in thousands | 26,183 | 22,092 | 19,358 | 23,705 | 19,641 |
| Payables turnover | 36.96 | 39.99 | 41.25 | 30.38 | 31.25 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $967,708K ÷ $26,183K
= 36.96
The payables turnover ratio for Addus HomeCare Corporation has exhibited fluctuations over the past five years. The ratio has ranged from 22.72 to 30.72, indicating the number of times the company pays its suppliers within a given period. A higher payables turnover ratio typically suggests that the company is paying its bills more quickly, which may indicate strong liquidity or efficient cash management.
In specific years, such as in 2020 and 2023, the payables turnover ratio was relatively lower at 22.72 and 27.45 respectively, which may signify a longer accounts payable period. Conversely, in 2021, the ratio peaked at 30.72, showing a faster rate of paying suppliers.
It is crucial to note that changes in the payables turnover ratio can be influenced by various factors such as negotiation terms with suppliers, cash flow management practices, and overall business operations. Further analysis of the company's financial position and operational efficiency would provide a more comprehensive understanding of the trends observed in the payables turnover ratio over the years.
Peer comparison
Dec 31, 2023