Addus HomeCare Corporation (ADUS)

Debt-to-equity 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-equity ratio		0.18	0.24	0.12	0.17	0.21	0.27	0.33	0.44	0.38	0.40	0.36	0.37	0.37	0.12	0.12	0.12	0.12	0.13	0.13	0.06

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $124,132K ÷ $706,694K
= 0.18

The debt-to-equity ratio of Addus HomeCare Corporation has shown fluctuations over the past eight quarters. The ratio was 0.18 in Q4 2023, indicating that for every dollar of equity, the company had $0.18 in debt. This suggests a conservative capital structure with a lower reliance on debt financing.

The ratio increased to 0.24 in Q3 2023 before decreasing to 0.12 in Q2 2023, reflecting a significant reduction in debt relative to equity. This may signal improved financial stability and a lower risk of financial distress for the company.

In Q1 2023, the ratio slightly increased to 0.17, still indicating a relatively low level of debt compared to equity. The trend continued with ratios of 0.21, 0.27, 0.33, and 0.44 in Q4 2022, Q3 2022, Q2 2022, and Q1 2022, respectively, showing a gradual increase in the leverage of the company over time.

Overall, the debt-to-equity ratio trend of Addus HomeCare Corporation suggests that the company has been managing its debt levels prudently, with a recent decrease in debt compared to equity in Q2 and Q3 2023 likely contributing to a stronger financial position. However, the upward trend in the ratio in the preceding quarters may indicate a shift towards a slightly more leveraged position.