Addus HomeCare Corporation (ADUS)

Working capital 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
Revenue (ttm)	US$ in thousands	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	650,057	597,350	565,258	547,388
Total current assets	US$ in thousands	200,004	211,249	207,790	209,210	222,807	240,142	256,372	276,229	324,341	299,707	290,410	275,140	287,697	299,380	296,336	278,051	269,387	386,476	196,704	193,459
Total current liabilities	US$ in thousands	145,117	139,639	133,902	124,659	131,146	128,188	128,004	104,357	117,689	112,533	116,944	118,088	143,901	93,743	93,685	84,606	87,528	76,286	69,324	67,384
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,051,791K ÷ ($200,004K – $145,117K)
= 19.16

Working capital turnover measures how efficiently a company is utilizing its working capital to generate revenue. A higher working capital turnover indicates better efficiency in managing working capital.

Analyzing Addus HomeCare Corporation's working capital turnover over the past eight quarters, we observe a generally increasing trend, indicating improving efficiency in utilizing working capital to generate revenue. In Q4 2023, the working capital turnover ratio reached 19.29, reflecting a significant improvement compared to the previous quarters.

The company's performance in Q4 2023 stands out as the most efficient use of working capital in generating revenue compared to the preceding quarters. This suggests that Addus HomeCare Corporation has been successful in optimizing its working capital management and could potentially generate more revenue from the same level of investment in the future.

Overall, the increasing trend in the working capital turnover ratio signifies a positive development in Addus HomeCare Corporation's operational efficiency and financial performance.