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.
Peer comparison
Dec 31, 2023