Addus HomeCare Corporation (ADUS)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 3.08 5.07 2.84 2.87
Quick ratio 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 3.00 4.96 2.73 2.77
Cash ratio 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 1.28 3.14 0.79 0.98

Addus HomeCare Corporation's liquidity ratios have shown a declining trend over the past few quarters. The current ratio, a measure of the company's ability to cover its short-term liabilities with its current assets, has decreased from 2.65 in Q1 2022 to 1.38 in Q4 2023. This indicates a decrease in the company's liquidity and ability to meet its short-term obligations. Similarly, the quick ratio, which excludes inventory from current assets, has followed the same downward trend from 2.65 in Q1 2022 to 1.38 in Q4 2023.

The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has also decreased from 1.28 in Q1 2022 to 0.58 in Q4 2023. This suggests a decreasing ability of Addus HomeCare Corporation to cover its short-term obligations with its most liquid assets.

Overall, the declining trend in all three liquidity ratios indicates potential challenges for Addus HomeCare Corporation in meeting its short-term financial obligations and managing its cash flow effectively. It may be important for the company to closely monitor its liquidity position and take appropriate steps to improve its short-term financial stability.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 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 73.25 75.33 77.33 71.51

The cash conversion cycle of Addus HomeCare Corporation has shown fluctuation over the past eight quarters. The company's cash conversion cycle measures the time it takes for Addus to convert its investments in inventory and accounts receivable into cash flows from sales.

In Q4 2023, Addus HomeCare Corporation had a cash conversion cycle of 26.53 days, which was an improvement compared to the previous quarter of 32.06 days. This decrease in the cash conversion cycle suggests that the company managed to streamline its operations and convert its assets into cash more efficiently.

Looking at the trend over the past eight quarters, there seems to be variability in the company's cash conversion cycle. However, Addus HomeCare Corporation has generally been successful in maintaining a relatively stable cash conversion cycle below 40 days, indicating efficient management of working capital.

While the cash conversion cycle in some quarters exceeded 40 days, such as in Q1 2022 and Q1 2023, it is important for Addus to monitor and potentially improve this metric to ensure optimal cash flow management and liquidity. Overall, the company's performance in terms of its cash conversion cycle reflects a balance between managing inventory, collecting receivables, and paying its obligations in a timely manner.