Adapthealth Corp (AHCO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,458,450 | 2,151,160 | 2,061,910 | 354,889 | -14,520 |
| Debt-to-capital ratio | 0.59 | 0.50 | 0.51 | 0.69 | 1.04 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,094,610K ÷ ($2,094,610K + $1,458,450K)
= 0.59
The debt-to-capital ratio of AdaptHealth Corp has shown fluctuations over the past five years. In 2019, the ratio was relatively high at 1.04, indicating a significant portion of the company's capital structure was financed by debt. However, there has been a decreasing trend in the debt-to-capital ratio in subsequent years, reaching 0.60 by the end of 2023.
The decline in the ratio suggests that AdaptHealth Corp has been reducing its reliance on debt to finance its operations and investments, which may indicate improved financial stability and reduced financial risk. A lower debt-to-capital ratio generally signifies a healthier balance sheet and may be viewed positively by investors and creditors alike.
It is important to note that while a decreasing trend in the debt-to-capital ratio can be favorable, it is also essential to consider the absolute levels of both debt and capital to assess the company's overall financial health comprehensively.
Peer comparison
Dec 31, 2023