Addus HomeCare Corporation (ADUS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 98,911 | 64,791 | 79,961 | 168,895 | 145,078 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 122,880 | 115,499 | 125,501 | 144,511 | 133,178 |
| Total current liabilities | US$ in thousands | 155,871 | 145,117 | 131,146 | 117,689 | 143,901 |
| Quick ratio | 1.42 | 1.24 | 1.57 | 2.66 | 1.93 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($98,911K
+ $—K
+ $122,880K)
÷ $155,871K
= 1.42
The quick ratio of Addus HomeCare Corporation has shown variability over the years. In December 2020, the quick ratio was 1.93, indicating that the company had $1.93 in liquid assets available to cover each dollar of current liabilities. This improved significantly to 2.66 by December 2021, suggesting a stronger liquidity position.
However, there was a decrease in the quick ratio to 1.57 by December 2022, which may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets. The ratio further decreased to 1.24 by December 2023, indicating a potential liquidity strain.
In December 2024, the quick ratio slightly improved to 1.42 but remained below the ideal level of 2, which is generally considered healthy for most companies.
Overall, the trend in the quick ratio for Addus HomeCare Corporation shows fluctuations, with periods of improvement and decline. This highlights the importance of closely monitoring the company's liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024