Addus HomeCare Corporation (ADUS)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	124,132	131,772	220,912	193,901	59,164
Total assets	US$ in thousands	1,024,430	937,994	947,585	892,582	636,748
Debt-to-assets ratio		0.12	0.14	0.23	0.22	0.09

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $124,132K ÷ $1,024,430K
= 0.12

The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. Lower values indicate that a company relies less on debt to fund its operations, while higher values suggest a higher proportion of debt in the capital structure.

In the case of Addus HomeCare Corporation, the trend of the debt-to-assets ratio over the past five years shows varying levels of debt utilization. The ratio decreased from 0.23 in 2021 to 0.12 in 2023, indicating a reduction in the reliance on debt to finance its assets.

The lowest ratio of 0.09 in 2019 suggests a conservative approach to debt management and a strong reliance on equity financing during that period. The slight increase in the ratio in 2022 and 2020 indicates a temporary uptick in debt relative to assets, which was subsequently reversed in 2023.

Overall, the decreasing trend in the debt-to-assets ratio from 0.23 in 2021 to 0.12 in 2023 reflects a positive shift towards a more conservative capital structure and reduced financial risk for Addus HomeCare Corporation.