Addus HomeCare Corporation (ADUS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 706,694 | 633,540 | 574,344 | 518,676 | 475,592 |
| Debt-to-capital ratio | 0.15 | 0.17 | 0.28 | 0.27 | 0.11 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $124,132K ÷ ($124,132K + $706,694K)
= 0.15
The debt-to-capital ratio of Addus HomeCare Corporation has shown fluctuations over the past five years. In 2023, the ratio decreased to 0.15 from 0.17 in 2022, indicating a lower proportion of debt in the capital structure compared to the previous year. However, when compared to 2021 and 2020, where the ratio was 0.28 and 0.27 respectively, the company has reduced its reliance on debt to finance its operations. In 2019, the ratio was lower at 0.11, suggesting a significant increase in the use of debt in the capital structure in the following years.
Overall, the trend in the debt-to-capital ratio indicates a mixed performance in managing debt levels. The company's ability to maintain a lower ratio in 2023 may suggest a more conservative financial strategy or improved capital structure management. Further analysis of the underlying factors driving these changes in the debt-to-capital ratio would be necessary to fully assess Addus HomeCare Corporation's financial leverage position.
Peer comparison
Dec 31, 2023