Adapthealth Corp (AHCO)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,964,920 | 2,094,610 | 2,153,270 | 2,183,550 | 776,568 |
| Total stockholders’ equity | US$ in thousands | 1,571,140 | 1,458,450 | 2,151,160 | 2,061,910 | 354,889 |
| Debt-to-capital ratio | 0.56 | 0.59 | 0.50 | 0.51 | 0.69 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,964,920K ÷ ($1,964,920K + $1,571,140K)
= 0.56
The debt-to-capital ratio of Adapthealth Corp has shown a decreasing trend over the past five years. As of December 31, 2020, the ratio stood at 0.69 and has since decreased steadily to 0.56 as of December 31, 2024. This indicates that the company has been successful in reducing its level of debt relative to its total capital over the period. A lower debt-to-capital ratio suggests a healthier financial position with less reliance on debt financing. However, the ratio increased slightly in 2023 compared to 2022 before declining again in 2024. Overall, the decreasing trend in the debt-to-capital ratio reflects positively on the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2024