Addus HomeCare Corporation (ADUS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 260,382 | 200,004 | 222,807 | 324,341 | 287,697 |
| Total current liabilities | US$ in thousands | 155,871 | 145,117 | 131,146 | 117,689 | 143,901 |
| Current ratio | 1.67 | 1.38 | 1.70 | 2.76 | 2.00 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $260,382K ÷ $155,871K
= 1.67
Based on the data provided, Addus HomeCare Corporation's current ratio has experienced fluctuations over the past five years. The current ratio is a measure of a company's ability to meet its short-term obligations with its current assets.
In December 2020, the current ratio stood at 2.00, indicating that the company had $2 of current assets for every $1 of current liabilities. This suggests a healthy liquidity position at the end of 2020.
By the end of 2021, the current ratio improved to 2.76, indicating even stronger liquidity and the ability to cover short-term obligations more comfortably.
However, in December 2022, the current ratio decreased to 1.70, signaling a potential weakening of the company's liquidity position compared to the previous year.
The trend continued in December 2023 when the current ratio dropped further to 1.38, raising concerns about the company's ability to meet its short-term obligations using its current assets.
In December 2024, the current ratio slightly improved to 1.67, but it still remained below the levels seen in 2020 and 2021.
Overall, the fluctuating current ratio of Addus HomeCare Corporation over the five-year period indicates varying levels of liquidity and the need for further analysis to understand the factors contributing to these changes.
Peer comparison
Dec 31, 2024