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.