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.
Peer comparison
Dec 31, 2023