Addus HomeCare Corporation (ADUS)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 218,443 | 124,132 | 131,772 | 220,912 | 193,901 |
| Total stockholders’ equity | US$ in thousands | 970,492 | 706,694 | 633,540 | 574,344 | 518,676 |
| Debt-to-equity ratio | 0.23 | 0.18 | 0.21 | 0.38 | 0.37 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $218,443K ÷ $970,492K
= 0.23
The debt-to-equity ratio is a measure of a company's financial leverage, indicating the proportion of debt used to finance its operations relative to shareholders' equity. For Addus HomeCare Corporation, the trend in the debt-to-equity ratio over the past five years is as follows:
- December 31, 2020: 0.37
- December 31, 2021: 0.38
- December 31, 2022: 0.21
- December 31, 2023: 0.18
- December 31, 2024: 0.23
The decreasing trend in the debt-to-equity ratio from 2020 to 2024 suggests that Addus HomeCare Corporation has been reducing its reliance on debt to finance its operations in relation to shareholders' equity. A lower debt-to-equity ratio indicates that the company has a stronger financial position and may be viewed favorably by investors and lenders.
Overall, the declining debt-to-equity ratio implies that Addus HomeCare Corporation has been managing its debt levels prudently and gradually improving its financial stability over the specified period.
Peer comparison
Dec 31, 2024