Addus HomeCare Corporation (ADUS)

Financial leverage 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
Total assets	US$ in thousands	1,024,430	1,035,730	928,384	931,083	937,994	945,933	964,528	987,211	947,585	924,915	889,160	877,577	892,582	695,431	660,921	644,819	636,748	619,110	408,684	378,923
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
Financial leverage ratio		1.45	1.51	1.39	1.43	1.48	1.54	1.61	1.69	1.65	1.66	1.63	1.66	1.72	1.37	1.34	1.32	1.34	1.34	1.45	1.38

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 fluctuated over the past eight quarters, ranging from 1.39 to 1.69. A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing to fund its operations.

The decreasing trend from Q2 2022 to Q2 2023 suggests that the company has been reducing its reliance on debt, which can be a positive sign for investors and creditors as it may indicate lower financial risk. However, the ratio saw a slight increase in Q3 2023 before decreasing again in Q4 2023.

Overall, while the company's financial leverage ratio remains above 1, indicating some level of financial risk, the recent fluctuations suggest that Addus HomeCare Corporation may be actively managing its debt levels to achieve a more balanced capital structure.