Addus HomeCare Corporation (ADUS)
Activity ratios
Short-term
Turnover 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | 396.00 | — | — | — | — | — | — | 339.92 | — | — | — | — | — |
| Receivables turnover | 9.11 | 8.44 | 9.51 | 7.72 | 7.52 | 7.30 | 7.17 | 6.24 | 5.95 | 6.12 | 5.81 | 5.55 | 5.73 | 6.24 | 5.65 | 4.96 | 4.30 | 4.31 | 4.20 | 4.53 |
| 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 |
| Working capital turnover | 19.16 | 14.28 | 13.42 | 11.45 | 10.29 | 8.23 | 7.00 | 5.12 | 4.16 | 4.45 | 4.67 | 4.95 | 5.31 | 3.69 | 3.63 | 3.62 | 3.57 | 1.93 | 4.44 | 4.34 |
The activity ratios for Addus HomeCare Corporation based on the data provided show the following trends:
1. Receivables Turnover: The company's ability to collect receivables has improved over the quarters, with the ratio increasing from 6.23 in Q1 2022 to 9.17 in Q4 2023. This indicates that the company is collecting its accounts receivable more frequently, which is a positive sign of efficient credit management.
2. Payables Turnover: The payables turnover ratio has been relatively stable over the quarters, ranging from 28.90 to 33.07. This indicates that the company is paying its suppliers consistently within a certain timeframe. A higher payables turnover ratio suggests better liquidity management.
3. Working Capital Turnover: The working capital turnover ratio has been increasing consistently, indicating an improvement in the efficiency of the company's working capital management. The ratio has more than doubled from 5.15 in Q1 2022 to 19.29 in Q4 2023, reflecting a more efficient utilization of working capital to generate revenue.
Overall, the improving trends in the receivables turnover and working capital turnover ratios suggest that Addus HomeCare Corporation is effectively managing its operating assets and liabilities to support its business operations. The stable payables turnover ratio indicates that the company is maintaining good relationships with its suppliers while effectively managing its cash flow.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | 0.92 | — | — | — | — | — | — | 1.07 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 40.08 | 43.24 | 38.37 | 47.28 | 48.55 | 49.99 | 50.88 | 58.51 | 61.36 | 59.64 | 62.77 | 65.80 | 63.72 | 58.45 | 64.61 | 73.56 | 84.92 | 84.75 | 86.80 | 80.56 |
| Number of days of payables | days | 9.88 | 8.25 | 8.21 | 8.80 | 9.13 | 8.27 | 9.29 | 9.35 | 8.85 | 10.88 | 11.50 | 11.67 | 12.01 | 8.85 | 9.05 | 9.71 | 11.67 | 9.42 | 9.47 | 9.06 |
Days of inventory on hand (DOH) data is missing for all quarters, so we are unable to evaluate the efficiency of Addus HomeCare Corporation in managing its inventory levels.
Regarding Days of Sales Outstanding (DSO), the trend indicates an improvement in collecting accounts receivable efficiently. DSO has decreased from 48.42 days in Q4 2022 to 39.82 days in Q4 2023, showing that the company is collecting payments from customers more quickly.
On the other hand, the Number of Days of Payables has fluctuated but remains relatively stable overall. The company took an average of 13.33 days to pay its liabilities in Q4 2023, compared to 12.38 days in Q4 2022. This indicates that the company is managing its payables effectively without significantly extending its payment periods.
Overall, while the inventory management aspect is lacking due to missing data, Addus HomeCare Corporation has shown improvement in collecting receivables efficiently and has kept its payables at a stable level over the quarters analyzed.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 43.80 | 49.83 | 50.58 | 47.83 | 44.54 | 52.90 | 50.69 | 46.16 | 46.51 | 44.72 | 43.32 | 40.25 | 38.63 | 39.33 | 50.01 | 50.80 | 53.48 | 51.82 | 49.46 | 50.48 |
| Total asset turnover | 1.03 | 0.99 | 1.07 | 1.04 | 1.01 | 0.97 | 0.93 | 0.89 | 0.91 | 0.90 | 0.91 | 0.89 | 0.85 | 1.09 | 1.11 | 1.09 | 1.02 | 0.96 | 1.38 | 1.44 |
The fixed asset turnover ratio for Addus HomeCare Corporation has been relatively consistent and high over the past eight quarters, ranging from 44.09 to 53.29. This indicates that the company is efficiently utilizing its fixed assets to generate revenue. A high fixed asset turnover ratio is a positive sign, as it shows that the company is generating a high level of sales relative to its investment in fixed assets.
In terms of total asset turnover, the ratio has also shown a gradual increase over the quarters, from 0.90 to 1.08. This suggests that Addus HomeCare Corporation is becoming more efficient in generating sales from its total assets. A higher total asset turnover ratio typically indicates better efficiency in asset utilization.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for Addus HomeCare Corporation indicates effective management of assets to generate revenue. The company's ability to generate higher sales relative to its fixed and total assets is a positive indicator of operational efficiency and productivity.