Adapthealth Corp (AHCO)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.44 | 0.45 | 0.45 | 0.48 | 0.46 | 0.45 | 0.41 | 0.41 | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 | 0.42 | 0.38 | 0.39 | 0.43 | 0.46 | 0.60 | 0.70 |
| Debt-to-capital ratio | 0.56 | 0.57 | 0.58 | 0.60 | 0.59 | 0.55 | 0.49 | 0.50 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.52 | 0.48 | 0.49 | 0.69 | 0.67 | 0.98 | 1.08 |
| Debt-to-equity ratio | 1.25 | 1.33 | 1.37 | 1.48 | 1.44 | 1.23 | 0.98 | 1.00 | 1.00 | 1.00 | 1.02 | 1.03 | 1.06 | 1.10 | 0.94 | 0.98 | 2.19 | 2.00 | 52.20 | — |
| Financial leverage ratio | 2.86 | 2.95 | 3.04 | 3.08 | 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 | — |
Based on the provided data, let's analyze the solvency ratios of Adapthealth Corp:
1. Debt-to-Assets Ratio:
- Adapthealth Corp's Debt-to-Assets ratio has shown a declining trend from March 2020 to December 2024, decreasing from 0.70 to 0.44.
- This indicates that the company's reliance on debt to finance its assets has been decreasing over time, which can be a positive sign for creditors and investors.
2. Debt-to-Capital Ratio:
- The Debt-to-Capital ratio of Adapthealth Corp has also exhibited a downward trend from March 2020 to December 2024, dropping from 1.08 to 0.56.
- A decreasing Debt-to-Capital ratio signifies that the company has been reducing its dependence on debt relative to its total capital structure, which may improve its financial stability and risk profile.
3. Debt-to-Equity Ratio:
- Adapthealth Corp's Debt-to-Equity ratio has fluctuated over the period, showing variations from 0.94 in June 2021 to 1.48 in March 2024.
- The ratio suggests the proportion of debt financing relative to equity in the company. The increasing trend may indicate higher financial risk associated with higher debt levels compared to equity.
4. Financial Leverage Ratio:
- The Financial Leverage Ratio of Adapthealth Corp has displayed a decreasing trend over time, declining from 87.44 in June 2020 to 2.86 in December 2024.
- A decreasing financial leverage ratio implies that the company is relying less on debt to support its assets, which can lead to lower financial risk and greater financial stability.
Overall, the solvency ratios of Adapthealth Corp demonstrate improvements in managing debt levels and financial risk over the period, potentially enhancing the company's resilience and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.01 | -2.30 | -8.85 | -4.64 | -4.59 | -2.56 | 1.46 | 1.52 | 1.86 | 2.20 | 2.73 | 3.47 | 2.98 | 1.82 | 0.19 | -1.57 | -3.19 | -1.83 | -0.39 | -0.30 |
Adapthealth Corp's interest coverage ratio shows a declining trend over the observation period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income.
Initially, the company's interest coverage was negative, indicating that its operating income was insufficient to cover its interest payments. However, from March 31, 2021, onwards, the interest coverage turned positive, showing an improvement in Adapthealth's ability to meet its interest obligations with its operating earnings.
The ratio increased gradually from June 30, 2021, reaching its peak at 3.47 on March 31, 2022. This improvement suggests that the company's operating performance was strong enough to cover its interest expenses more than three times during that period.
However, the interest coverage ratio started to decline after March 31, 2022, indicating a potential deterioration in the company's ability to cover its interest costs. The ratio turned negative again on September 30, 2023, and continued to be negative until December 31, 2024, signifying that Adapthealth struggled to generate sufficient income to cover its interest payments during this period.
Overall, the analysis of Adapthealth Corp's interest coverage ratio suggests fluctuations in the company's ability to meet its interest obligations with its operating income, indicating potential financial challenges and the need for effective management of debt and operational performance going forward.