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.