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.
Peer comparison
Dec 31, 2023