Addus HomeCare Corporation (ADUS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 64,791 | 79,961 | 168,895 | 145,078 | 111,714 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 115,499 | 125,501 | 144,511 | 133,178 | 151,247 |
| Total current liabilities | US$ in thousands | 145,117 | 131,146 | 117,689 | 143,901 | 87,528 |
| Quick ratio | 1.24 | 1.57 | 2.66 | 1.93 | 3.00 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($64,791K
+ $—K
+ $115,499K)
÷ $145,117K
= 1.24
The quick ratio of Addus HomeCare Corporation has shown a declining trend over the past five years, decreasing from 3.08 in 2019 to 1.38 in 2023. This ratio measures the ability of the company to meet its short-term liabilities with its most liquid assets.
A quick ratio of 1.38 in 2023 indicates that the company has $1.38 of liquid assets available to cover each dollar of current liabilities. While this suggests that Addus HomeCare Corporation may still have an adequate level of liquidity to meet its short-term obligations, the downward trend in the quick ratio may raise concerns about the company's ability to quickly convert its assets into cash as efficiently as it did in the previous years.
It is important for stakeholders to closely monitor the quick ratio going forward to assess the company's liquidity position and its ability to weather potential financial challenges in the future.
Peer comparison
Dec 31, 2023