Addus HomeCare Corporation (ADUS)

Solvency ratios

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
Debt-to-assets ratio 0.12 0.16 0.08 0.12 0.14 0.17 0.20 0.26 0.23 0.24 0.22 0.22 0.22 0.09 0.09 0.09 0.09 0.10 0.09 0.05
Debt-to-capital ratio 0.15 0.19 0.11 0.14 0.17 0.21 0.25 0.30 0.28 0.28 0.26 0.27 0.27 0.11 0.11 0.11 0.11 0.11 0.11 0.06
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
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

The solvency ratios of Addus HomeCare Corporation indicate the company's ability to meet its long-term financial obligations and manage debt levels effectively.

The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.08 to 0.20. This ratio suggests that a significant portion of the company's assets are financed by debt, with lower values indicating a lower dependence on borrowed funds to finance its operations.

Similarly, the debt-to-capital and debt-to-equity ratios have shown consistent trends, indicating the proportion of debt in the company's capital structure. These ratios have ranged from 0.11 to 0.30 and 0.12 to 0.44, respectively. Lower values in these ratios generally indicate lower financial risk and less reliance on debt for financing.

The financial leverage ratio, which measures the company's total assets relative to equity, has also shown stability around 1.43 to 1.69 over the quarters analyzed. This ratio indicates the extent to which the company is using debt to fund its operations and suggests a moderate level of financial risk.

Overall, Addus HomeCare Corporation's solvency ratios reflect a balanced approach to managing its debt levels and maintaining financial stability. The consistent trends in these ratios suggest a prudent capital structure and effective management of long-term financial obligations. Continued monitoring of these ratios will be essential to ensure sustainable financial health.

Coverage ratios

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
Interest coverage 8.32 7.99 7.99 7.77 7.76 8.47 9.46 10.54 11.40 11.75 13.29 13.25 14.15 14.87 12.59 12.07 11.50 8.11 6.32 5.21

Interest coverage measures the ability of a company to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a company's better capacity to cover interest expenses.

In the case of Addus HomeCare Corporation, the interest coverage ratio has been consistently strong over the past eight quarters, ranging from 8.02 to 11.02. This demonstrates the company's ability to comfortably cover its interest expenses from its operating income. The trend shows a slight decline in interest coverage in the most recent quarters compared to previous ones, potentially indicating a slight decrease in the company's ability to cover interest expenses.

Overall, the consistently high and relatively stable interest coverage ratios suggest that Addus HomeCare Corporation has a healthy financial position with sufficient operating income to cover its interest payments. However, it may be important for stakeholders to monitor any further changes in interest coverage over time to assess the company's financial health and ability to meet its debt obligations.