Addus HomeCare Corporation (ADUS)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,158,256 | 1,131,206 | 1,109,629 | 1,080,856 | 1,051,791 | 1,022,325 | 991,801 | 968,399 | 943,504 | 921,874 | 898,854 | 880,430 | 859,640 | 832,331 | 810,463 | 777,659 | 762,842 | 759,222 | 735,551 | 700,648 |
| Receivables | US$ in thousands | 122,880 | 96,600 | 109,195 | 104,727 | 115,499 | 121,112 | 104,252 | 125,441 | 125,501 | 126,253 | 125,291 | 141,141 | 144,511 | 135,993 | 139,378 | 140,185 | 133,178 | 121,582 | 130,202 | 141,209 |
| Receivables turnover | 9.43 | 11.71 | 10.16 | 10.32 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,158,256K ÷ $122,880K
= 9.43
The receivables turnover ratio for Addus HomeCare Corporation has shown a consistent upward trend over the period from March 31, 2020, to December 31, 2024. The ratio has increased from 4.96 in March 2020 to 9.43 in December 2024. This indicates that the company has been able to collect its accounts receivable more efficiently over time.
The trend of increasing receivables turnover suggests that Addus HomeCare Corporation has been improving its collection process, possibly by streamlining billing procedures, enhancing credit policies, or actively managing accounts receivable. A higher receivables turnover ratio signifies that the company is collecting its outstanding receivables more quickly, which is a positive indicator of liquidity and efficient operations.
The peak in the receivables turnover ratio of 11.71 in September 30, 2024, followed by a slight decrease in the next quarter, might indicate some temporary challenges in managing accounts receivable efficiently. However, the ratio rebounded to 9.43 by December 31, 2024, which is still significantly higher than the ratios observed in the earlier periods.
Overall, the increasing trend in receivables turnover for Addus HomeCare Corporation reflects effective management of accounts receivable and a focus on timely collection, which can contribute to the company's financial stability and operational performance.
Peer comparison
Dec 31, 2024