Addus HomeCare Corporation (ADUS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 102,691 | 92,432 | 69,078 | 66,204 | 45,131 |
| Interest expense | US$ in thousands | 7,732 | 11,106 | 8,907 | 5,806 | 3,189 |
| Interest coverage | 13.28 | 8.32 | 7.76 | 11.40 | 14.15 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $102,691K ÷ $7,732K
= 13.28
Based on the provided data, the interest coverage ratio for Addus HomeCare Corporation has shown a gradual decline from 14.15 in December 31, 2020, to 11.40 in December 31, 2021, and further to 7.76 in December 31, 2022. Despite a slight improvement to 8.32 in December 31, 2023, the ratio remains below the previous levels. However, there was a significant increase to 13.28 in December 31, 2024, suggesting the company's ability to cover interest expenses has strengthened. It is important for stakeholders to monitor this ratio closely, as a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations with its operating income.
Peer comparison
Dec 31, 2024