Addus HomeCare Corporation (ADUS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 38.64 | 40.08 | 48.55 | 61.36 | 63.75 |
| Number of days of payables | days | 9.37 | 9.88 | 9.13 | 8.85 | 12.01 |
| Cash conversion cycle | days | 29.28 | 30.21 | 39.42 | 52.51 | 51.74 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 38.64 – 9.37
= 29.28
The cash conversion cycle of Addus HomeCare Corporation has shown a decreasing trend over the past five years, starting at 51.74 days as of December 31, 2020, and reaching its lowest point at 29.28 days as of December 31, 2024. This indicates that the company has been able to efficiently manage its working capital and convert its resources into cash quicker over time. A lower cash conversion cycle suggests that Addus HomeCare is collecting payments from customers sooner, managing its inventory effectively, and extending payment to suppliers at a slower rate. This improved efficiency in cash conversion cycle may lead to better liquidity and cash flow for the company.
Peer comparison
Dec 31, 2024