Addus HomeCare Corporation (ADUS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 2.94 | — | — | — | — | — | — | — | 0.92 | — | — | — | — | — | — | 1.07 | — |
| Days of sales outstanding (DSO) | days | 38.72 | 31.17 | 35.92 | 35.37 | 40.08 | 43.24 | 38.37 | 47.28 | 48.55 | 49.99 | 50.88 | 58.51 | 61.36 | 59.64 | 62.77 | 65.80 | 63.72 | 58.45 | 64.61 | 73.56 |
| Number of days of payables | days | 9.37 | 9.82 | 7.27 | 8.10 | 9.88 | 8.25 | 8.21 | 8.80 | 9.13 | 8.27 | 9.29 | 9.35 | 8.85 | 10.88 | 11.50 | 11.67 | 12.01 | 8.85 | 9.05 | 9.71 |
| Cash conversion cycle | days | 29.36 | 21.34 | 28.65 | 30.20 | 30.21 | 34.99 | 30.16 | 38.48 | 39.42 | 41.72 | 41.59 | 50.08 | 52.51 | 48.76 | 51.27 | 54.13 | 51.71 | 49.60 | 56.63 | 63.86 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 38.72 – 9.37
= 29.36
The cash conversion cycle of Addus HomeCare Corporation has shown a declining trend over the periods covered in the data. The company's cash conversion cycle, which measures how long it takes for a company to convert its investments in inventory and other resources back into cash, decreased from 63.86 days as of March 31, 2020, to 29.36 days by December 31, 2024.
The decreasing trend in the cash conversion cycle indicates that Addus HomeCare Corporation has been effectively managing its working capital and improving its efficiency in converting its resources into cash. A shorter cash conversion cycle suggests that the company is able to generate cash more quickly, which can be indicative of strong operational performance and liquidity.
The most significant improvements in the cash conversion cycle occurred between June 30, 2022, and September 30, 2024, where the cycle decreased from 41.72 days to 29.36 days. This indicates that the company has likely implemented strategies to streamline its operations, reduce inventory holding periods, and accelerate cash collection from customers.
Overall, a decreasing cash conversion cycle is a positive indicator for Addus HomeCare Corporation, as it reflects improved liquidity management and operational efficiency. It suggests that the company has been successful in managing its working capital effectively and converting its investments into cash more rapidly.
Peer comparison
Dec 31, 2024