Addus HomeCare Corporation (ADUS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 200,004 | 222,807 | 324,341 | 287,697 | 269,387 |
| Total current liabilities | US$ in thousands | 145,117 | 131,146 | 117,689 | 143,901 | 87,528 |
| Current ratio | 1.38 | 1.70 | 2.76 | 2.00 | 3.08 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $200,004K ÷ $145,117K
= 1.38
Based on the data provided, the current ratio of Addus HomeCare Corporation has been fluctuating over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates better short-term liquidity and financial health.
In 2019, the current ratio was relatively high at 3.08, indicating that the company had strong short-term liquidity and was well-positioned to cover its short-term obligations. However, the ratio decreased to 2.00 in 2020, suggesting a decrease in short-term liquidity, but still indicating a reasonable ability to meet current liabilities.
In 2021, the current ratio significantly increased to 2.76, showing an improvement in the company's short-term liquidity position. This could be attributed to better management of current assets and liabilities. The ratio further increased to 1.70 in 2022, indicating a slight decline in short-term liquidity compared to the previous year.
The latest data for 2023 shows a current ratio of 1.38, which is the lowest among the five years analyzed. This decrease may raise concerns about the company's ability to cover its short-term obligations with current assets. It is important for stakeholders to monitor the trend of the current ratio to assess the company's liquidity position over time.
Peer comparison
Dec 31, 2023