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.