Addus HomeCare Corporation (ADUS)

Solvency ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Debt-to-assets ratio	0.15	0.00	0.00	0.10	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
Debt-to-capital ratio	0.18	0.00	0.00	0.12	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
Debt-to-equity ratio	0.23	0.00	0.00	0.14	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
Financial leverage ratio	1.46	1.22	1.21	1.40	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

Addus HomeCare Corporation's solvency ratios indicate its ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. Addus HomeCare Corporation's debt-to-assets ratio has been relatively stable, ranging from 0.00 to 0.26 over the past several quarters. The company's debt level as a percentage of its total assets has trended downwards in the most recent periods, indicating a lower reliance on debt for financing its operations.

2. Debt-to-capital ratio: This ratio reflects the extent to which a company is leveraging its capital structure through debt. Addus HomeCare Corporation's debt-to-capital ratio has shown fluctuations but has also generally decreased over time, reaching 0.00 in the most recent quarter. This implies that the company has been reducing its debt levels relative to its total capital.

3. Debt-to-equity ratio: The debt-to-equity ratio measures the relationship between the company's debt and equity financing. Addus HomeCare Corporation's debt-to-equity ratio has displayed a decreasing trend, indicating a decreasing reliance on debt relative to equity for funding the company's operations. The ratio decreased from 0.37 in December 2020 to 0.00 in June 2024, reflecting a strengthening financial position.

4. Financial leverage ratio: This ratio assesses the company's level of financial risk by comparing its total assets to equity. Addus HomeCare Corporation's financial leverage ratio has also shown a declining pattern over the quarters, indicating a reduction in financial risk and leverage. The decreasing trend suggests that the company is becoming less reliant on debt to finance its assets.

Overall, the trend of decreasing solvency ratios for Addus HomeCare Corporation suggests an improving financial solvency position, with the company managing its debt levels effectively and strengthening its financial position over time.

Coverage ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Interest coverage	13.64	12.51	9.17	8.58	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

The interest coverage ratio of Addus HomeCare Corporation has shown a declining trend over the last few years based on the data provided. The ratio, which measures the company's ability to cover its interest expenses with its operating income, started at a relatively strong level of around 12 in March 2020, indicating that the company generated 12 times more operating income than its interest expenses during that period.

However, the interest coverage ratio gradually decreased over the subsequent quarters, reaching a low of 7.77 in March 2023. This decline suggests that the company's ability to cover its interest payments with operating income weakened during this period. There was a slight increase in the ratio in the following quarters, but it remained relatively low compared to the initial levels.

The latest available data as of December 31, 2024, shows an interest coverage ratio of 13.64, indicating a slight improvement in the company's ability to cover its interest expenses with operating income. However, the ratio is still below the levels observed in the earlier periods.

Overall, the declining trend in Addus HomeCare Corporation's interest coverage ratio raises some concerns about the company's financial health and ability to meet its interest obligations from operating income. Investors and stakeholders should continue monitoring the company's financial performance to assess any potential impact on its overall financial stability.