Addus HomeCare Corporation (ADUS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 64,791 | 79,961 | 168,895 | 145,078 | 111,714 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 145,117 | 131,146 | 117,689 | 143,901 | 87,528 |
| Cash ratio | 0.45 | 0.61 | 1.44 | 1.01 | 1.28 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($64,791K
+ $—K)
÷ $145,117K
= 0.45
The cash ratio measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off current liabilities using liquid assets.
For Addus HomeCare Corporation, the cash ratio has fluctuated over the past five years. In 2023, the cash ratio decreased to 0.58 from 0.74 in 2022, signaling a slight decrease in the company's ability to cover its short-term liabilities with its available cash. However, it is important to note that the cash ratio is still above 1, indicating that Addus HomeCare Corporation has sufficient cash reserves to meet its short-term obligations.
Comparing the current cash ratio to previous years, we see a notable decrease from the high of 1.51 in 2021. This decline may suggest that the company has either increased its short-term liabilities or experienced a reduction in its cash holdings relative to its liabilities. Further analysis of the company's cash flow management and liquidity position would be warranted to fully understand the factors driving the changes in the cash ratio over time.
Peer comparison
Dec 31, 2023