Adapthealth Corp (AHCO)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,094,610	2,153,270	2,183,550	776,568	395,112
Total assets	US$ in thousands	4,508,650	5,219,590	5,250,480	1,813,470	546,538
Debt-to-assets ratio		0.46	0.41	0.42	0.43	0.72

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,094,610K ÷ $4,508,650K
= 0.46

The debt-to-assets ratio of AdaptHealth Corp has been relatively stable over the past five years, with values ranging from 0.42 to 0.76. The ratio indicates the proportion of the company's assets that are financed through debt. A decreasing trend in the ratio over time typically suggests a lower dependency on debt for financing assets, while an increasing trend may signal higher leverage and financial risk.

In the case of AdaptHealth Corp, the ratio decreased from 0.76 in 2019 to 0.42 in 2021, indicating a reduction in debt relative to assets during this period. However, the ratio increased slightly to 0.48 in 2023, which suggests a higher proportion of assets being financed by debt compared to the previous year.

Overall, the debt-to-assets ratio of AdaptHealth Corp indicates that the company relies moderately on debt to finance its operations and investments, although the recent increase in the ratio may warrant further analysis to understand the reasons behind this shift in leverage.