Addus HomeCare Corporation (ADUS)

Debt-to-capital 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
Long-term debt	US$ in thousands	124,132	163,917	78,702	108,487	131,772	163,557	196,342	256,127	220,912	220,707	193,714	193,839	193,901	59,561	59,048	59,112	59,164	59,248	36,231	17,375
Total stockholders’ equity	US$ in thousands	706,694	684,334	666,351	648,886	633,540	614,837	599,777	585,778	574,344	558,051	544,055	529,910	518,676	507,600	494,861	486,808	475,592	462,199	281,507	274,020
Debt-to-capital ratio		0.15	0.19	0.11	0.14	0.17	0.21	0.25	0.30	0.28	0.28	0.26	0.27	0.27	0.11	0.11	0.11	0.11	0.11	0.11	0.06

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 eight quarters, ranging from 0.11 to 0.30. A lower ratio indicates a lower reliance on debt to finance the company's operations, while a higher ratio suggests a greater dependency on debt.

In the most recent quarter, Q4 2023, the debt-to-capital ratio stood at 0.15, indicating a moderate level of debt relative to the company's capital structure. This ratio has decreased from the previous quarter, Q3 2023, where it was 0.19, suggesting a positive trend of decreasing leverage.

It is worth noting that in the last two quarters of 2022, the debt-to-capital ratio was relatively high at 0.25 and 0.30, signaling a higher proportion of debt in the company's overall capitalization. However, there has been a downward trend in this ratio since then, which could indicate efforts by the company to reduce its debt levels or improve its capital structure.

Overall, a downward trend in the debt-to-capital ratio can be seen over the past year, reflecting potential improvements in the company's balance sheet health and financial stability. It is essential for investors and stakeholders to monitor this ratio to assess the company's risk profile and financial health.