Addus HomeCare Corporation (ADUS)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,051,790	943,505	859,640	762,533	647,209
Receivables	US$ in thousands	115,499	125,501	144,511	133,178	151,247
Receivables turnover		9.11	7.52	5.95	5.73	4.28

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,051,790K ÷ $115,499K
= 9.11

Addus HomeCare Corporation's receivables turnover has shown a positive trend over the past five years, increasing consistently from 4.28 in 2019 to 9.17 in 2023. This improvement indicates that the company has been able to collect its accounts receivable more efficiently each year. A higher receivables turnover ratio implies that Addus HomeCare is collecting payments from its customers more quickly, which is a positive sign for the company's liquidity and cash flow management. This trend suggests that Addus HomeCare has been effectively managing its credit policies and accounts receivable collection processes, potentially reducing the risk of bad debts or cash flow disruptions. Overall, the increasing receivables turnover ratio reflects positively on Addus HomeCare's financial performance and operational efficiency in managing its receivables.