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.
Peer comparison
Dec 31, 2023