Addus HomeCare Corporation (ADUS)
Quick ratio
| 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 | US$ in thousands | 64,791 | 79,750 | 84,188 | 73,543 | 79,961 | 105,644 | 120,917 | 124,763 | 168,895 | 152,379 | 139,400 | 125,547 | 145,078 | 170,331 | 158,549 | 130,463 | 111,714 | 239,609 | 54,792 | 66,170 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 115,499 | 121,112 | 104,252 | 125,441 | 125,501 | 126,253 | 125,291 | 141,141 | 144,511 | 135,993 | 139,378 | 140,185 | 133,178 | 121,582 | 130,202 | 141,209 | 151,247 | 138,705 | 134,427 | 120,819 |
| Total current liabilities | US$ in thousands | 145,117 | 139,639 | 133,902 | 124,659 | 131,146 | 128,188 | 128,004 | 104,357 | 117,689 | 112,533 | 116,944 | 118,088 | 143,901 | 93,743 | 93,685 | 84,606 | 87,528 | 76,286 | 69,324 | 67,384 |
| 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 |
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 exhibited a declining trend over the past eight quarters, dropping from 2.65 in Q1 2022 to 1.38 in Q4 2023. This indicates a decrease in the company's ability to meet its short-term obligations with its most liquid assets.
A quick ratio above 1.0 generally suggests that the company is able to cover its current liabilities with its most liquid assets, such as cash and accounts receivable. However, the consistent decrease in the quick ratio may raise concerns about the company's liquidity position and ability to meet its short-term financial obligations in a timely manner.
It is advisable for stakeholders to further investigate the reasons behind this declining trend in the quick ratio and assess whether it indicates potential liquidity challenges for Addus HomeCare Corporation.
Peer comparison
Dec 31, 2023