Addus HomeCare Corporation (ADUS)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 967,700 | 945,550 | 920,647 | 902,252 | 883,556 | 862,604 | 838,927 | 819,726 | 798,563 | 777,559 | 759,721 | 733,845 | 720,468 | 712,371 | 693,430 | 660,440 | 614,096 | 571,178 | 509,871 | 463,752 |
| Payables | US$ in thousands | 26,183 | 21,375 | 20,699 | 21,758 | 22,092 | 19,545 | 21,346 | 21,004 | 19,358 | 23,167 | 23,942 | 23,459 | 23,705 | 17,270 | 17,201 | 17,561 | 19,641 | 14,741 | 13,230 | 11,506 |
| Payables turnover | 36.96 | 44.24 | 44.48 | 41.47 | 39.99 | 44.13 | 39.30 | 39.03 | 41.25 | 33.56 | 31.73 | 31.28 | 30.39 | 41.25 | 40.31 | 37.61 | 31.27 | 38.75 | 38.54 | 40.31 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $967,700K ÷ $26,183K
= 36.96
The payables turnover ratio measures how quickly a company pays off its suppliers. A higher payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying them off quickly. In the case of Addus HomeCare Corporation, their payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 27.45 in Q4 2023 to a high of 33.07 in Q2 2023.
Overall, Addus HomeCare Corporation has maintained relatively strong payables turnover ratios, consistently above 27. This suggests that the company has been managing its accounts payable effectively and efficiently over the past two years. The recent decrease in the payables turnover ratio from Q2 to Q4 2023 could indicate a potential slowdown in the company's payment of suppliers compared to the previous quarters, which may require further investigation to understand the underlying reasons behind this trend.
Peer comparison
Dec 31, 2023