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.