Addus HomeCare Corporation (ADUS)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 92,432 | 69,078 | 66,204 | 45,131 | 35,701 |
| Interest expense | US$ in thousands | 11,106 | 8,907 | 5,806 | 3,189 | 3,105 |
| Interest coverage | 8.32 | 7.76 | 11.40 | 14.15 | 11.50 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $92,432K ÷ $11,106K
= 8.32
The interest coverage ratio of Addus HomeCare Corporation has shown a declining trend over the past five years. The ratio decreased from 21.97 in 2019 to 9.45 in 2023. This suggests that the company's ability to cover its interest expenses with its operating income has weakened over time. A lower interest coverage ratio indicates a higher risk of default on interest payments. It is important for the company to closely monitor its interest coverage ratio and take necessary steps to improve its financial health and liquidity position.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Addus HomeCare Corporation
ADUS
8.32
Adapthealth Corp
AHCO
-4.59
Amedisys Inc
AMED
2.30
Chemed Corp
CHE
113.73
Option Care Health Inc
OPCH
8.00