Adapthealth Corp (AHCO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,508,650 | 5,219,590 | 5,250,480 | 1,813,470 | 546,538 |
| Total stockholders’ equity | US$ in thousands | 1,458,450 | 2,151,160 | 2,061,910 | 354,889 | -14,520 |
| Financial leverage ratio | 3.09 | 2.43 | 2.55 | 5.11 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,508,650K ÷ $1,458,450K
= 3.09
The financial leverage ratio of AdaptHealth Corp has shown fluctuations over the past five years. At the end of 2023, the financial leverage ratio stood at 3.09, indicating an increased level of leverage compared to the previous year. In 2022 and 2021, the ratio was 2.43 and 2.55, respectively, reflecting a moderate level of leverage. Notably, at the end of 2020, the ratio spiked to 5.11, suggesting a high level of financial leverage, which could potentially raise concerns about the company's ability to meet its debt obligations.
It is important to assess the trend in the financial leverage ratio over time to understand how the company's capital structure and risk profile have evolved. A rising trend in the ratio may indicate increasing reliance on debt financing, which could heighten financial risk, while a declining trend may suggest a more conservative approach to capital structure.
Further analysis of the components of debt and equity in the company's capital structure would provide additional insights into the factors driving changes in the financial leverage ratio and help in evaluating the overall financial health and risk profile of AdaptHealth Corp.
Peer comparison
Dec 31, 2023