Addus HomeCare Corporation (ADUS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,024,430 | 937,994 | 947,585 | 892,582 | 636,748 |
| Total stockholders’ equity | US$ in thousands | 706,694 | 633,540 | 574,344 | 518,676 | 475,592 |
| Financial leverage ratio | 1.45 | 1.48 | 1.65 | 1.72 | 1.34 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,024,430K ÷ $706,694K
= 1.45
The financial leverage ratio of Addus HomeCare Corporation has shown fluctuating trends over the past five years. The ratio, which indicates the extent of a company's debt financing relative to its equity, stood at 1.45 in 2023, slightly lower than the previous year. This suggests that the company's reliance on debt decreased slightly, which can be seen as a positive sign for financial stability.
In 2022, the ratio was slightly higher at 1.48, showing a gradual increase in leverage compared to the previous year. The ratio peaked in 2021 at 1.65, indicating a higher level of debt usage relative to equity. This could signal increased financial risk as higher debt levels may lead to higher interest expenses and potential liquidity challenges.
The financial leverage ratio continued to rise in 2020 to 1.72, reaching its highest point in the past five years. This significant increase suggests a substantial shift towards debt financing, which may have been a strategic decision to fund growth or operations.
In contrast, the ratio was lower in 2019 at 1.34, indicating a lower level of debt relative to equity compared to the subsequent years. This could indicate a more conservative approach to financing or a focus on maintaining a stronger equity position.
Overall, the trend in Addus HomeCare Corporation's financial leverage ratio indicates variations in the company's capital structure and financing decisions over the past five years. It is important for stakeholders to assess the company's ability to manage its debt levels effectively and maintain financial stability in the long term.
Peer comparison
Dec 31, 2023