Adapthealth Corp (AHCO)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,508,650 | 4,725,250 | 5,203,010 | 5,283,440 | 5,219,590 | 5,237,980 | 5,202,010 | 5,204,340 | 5,250,480 | 5,191,720 | 4,687,660 | 4,520,070 | 1,813,470 | 1,556,270 | 742,467 | 665,004 | 546,538 | 256,627 | 255,866 | 255,231 |
| Total stockholders’ equity | US$ in thousands | 1,458,450 | 1,732,480 | 2,180,940 | 2,159,890 | 2,151,160 | 2,154,370 | 2,133,220 | 2,115,360 | 2,061,910 | 1,990,110 | 1,889,960 | 1,788,280 | 354,889 | 360,999 | 8,491 | -33,173 | -14,520 | 5,000 | 5,000 | 5,000 |
| Financial leverage ratio | 3.09 | 2.73 | 2.39 | 2.45 | 2.43 | 2.43 | 2.44 | 2.46 | 2.55 | 2.61 | 2.48 | 2.53 | 5.11 | 4.31 | 87.44 | — | — | 51.33 | 51.17 | 51.05 |
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 been gradually increasing over the quarters, indicating a rising level of leverage in the company's capital structure.
In Q4 2023, the financial leverage ratio stood at 3.09, suggesting that the company's level of debt relative to its equity was higher compared to the previous quarters. This may imply that AdaptHealth is increasingly relying on debt financing to fund its operations or growth initiatives.
The trend of increasing financial leverage ratios from Q1 2023 to Q4 2023 may raise concerns about the company's ability to manage its debt obligations, especially if economic conditions deteriorate or interest rates rise. It also suggests that the company may be taking on more risk by relying heavily on debt to finance its operations.
Overall, it is essential for investors and stakeholders to closely monitor AdaptHealth Corp's financial leverage ratio and assess its implications on the company's financial health and sustainability in the long run.
Peer comparison
Dec 31, 2023