Addus HomeCare Corporation (ADUS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.67 | 2.11 | 2.00 | 1.35 | 1.38 | 1.51 | 1.55 | 1.68 | 1.70 | 1.87 | 2.00 | 2.65 | 2.76 | 2.66 | 2.48 | 2.33 | 2.00 | 3.19 | 3.16 | 3.29 |
| Quick ratio | 1.42 | 2.02 | 1.91 | 1.28 | 1.24 | 1.44 | 1.41 | 1.60 | 1.57 | 1.81 | 1.92 | 2.55 | 2.66 | 2.56 | 2.38 | 2.25 | 1.93 | 3.11 | 3.08 | 3.21 |
| Cash ratio | 0.63 | 1.41 | 1.17 | 0.54 | 0.45 | 0.57 | 0.63 | 0.59 | 0.61 | 0.82 | 0.94 | 1.20 | 1.44 | 1.35 | 1.19 | 1.06 | 1.01 | 1.82 | 1.69 | 1.54 |
Addus HomeCare Corporation's liquidity ratios show a downward trend over the past few years.
- The current ratio, which indicates the company's ability to meet its short-term obligations with its short-term assets, has decreased from 3.29 on March 31, 2020, to 1.38 on December 31, 2023, before showing a slight improvement to 1.67 on December 31, 2024.
- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also experienced a similar declining trend, dropping from 3.21 on March 31, 2020, to 1.42 on December 31, 2024.
- The cash ratio, representing the company's ability to cover short-term liabilities with its cash and cash equivalents, decreased from 1.54 on March 31, 2020, to 0.45 on December 31, 2023, before recovering to 0.63 on December 31, 2024.
These declining trends in liquidity ratios suggest that Addus HomeCare Corporation may be facing challenges in maintaining sufficient liquid assets to meet its short-term obligations. Investors and stakeholders should monitor these ratios closely to ensure the company can manage its financial obligations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Addus HomeCare Corporation has shown a consistent trend of improvement over the quarters from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the amount of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Initially, the company had a cash conversion cycle of 63.86 days on March 31, 2020, which gradually decreased to 21.34 days by September 30, 2024. This means that the company has been able to more efficiently manage its working capital, reduce the time it takes to sell inventory, and collect receivables from customers.
The decreasing trend in the cash conversion cycle indicates that Addus HomeCare Corporation has been able to streamline its operations, improve inventory turnover, and optimize its receivables collection process. A shorter cash conversion cycle typically suggests better liquidity and working capital management, allowing the company to generate cash more quickly and efficiently.
Overall, the improving cash conversion cycle of Addus HomeCare Corporation reflects positive operational efficiency and effective management of resources, which can support the company's financial health and sustainability in the long term.