Addus HomeCare Corporation (ADUS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 98,911 | 64,791 | 79,961 | 168,895 | 145,078 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 155,871 | 145,117 | 131,146 | 117,689 | 143,901 |
| Cash ratio | 0.63 | 0.45 | 0.61 | 1.44 | 1.01 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($98,911K
+ $—K)
÷ $155,871K
= 0.63
The cash ratio of Addus HomeCare Corporation has fluctuated over the past five years, ranging from a low of 0.45 on December 31, 2023, to a high of 1.44 on December 31, 2021. The cash ratio measures the company's ability to cover its short-term obligations using only its cash and cash equivalents.
A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources, while a lower ratio may suggest potential liquidity issues. It is important for investors and analysts to monitor changes in the cash ratio over time to assess the company's liquidity position and financial health.
The significant decrease in the cash ratio from 1.44 in 2021 to 0.45 in 2023 raises concerns about the company's liquidity management and ability to cover short-term obligations. Further investigation into the factors contributing to this decline is necessary to understand the company's financial position better. Additionally, the slight increase in the cash ratio to 0.63 on December 31, 2024, indicates a slight improvement in the company's liquidity position compared to the previous year, but it remains below the levels seen in earlier years.
Peer comparison
Dec 31, 2024