Adapthealth Corp (AHCO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.72 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 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 | 1.04 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 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 | — | — | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of AdaptHealth Corp show a consistent trend over the past eight quarters.
The Debt-to-assets ratio has seen a slight increase from Q1 2023 to Q4 2023, standing at 0.48. This indicates that 48% of the company's assets are financed by debt, showing a moderate level of dependency on borrowed funds.
The Debt-to-capital ratio has also shown a gradual increase over the same period, reaching 0.60 in Q4 2023. This ratio suggests that 60% of the company's capital structure is in the form of debt, indicating a slightly elevated level of leverage.
The Debt-to-equity ratio has exhibited fluctuations, with a peak of 1.49 in Q4 2023. This metric indicates that for every $1 of equity, the company has $1.49 in debt, showcasing a higher level of financial risk and reliance on debt financing.
The Financial leverage ratio has followed a similar pattern as the other solvency ratios, increasing to 3.09 in Q4 2023. This ratio suggests that the company has $3.09 in total assets for every $1 of equity, showing a significant amount of financial leverage.
Overall, the solvency ratios of AdaptHealth Corp reveal a trend of increasing leverage and dependency on debt over the past quarters. This could potentially indicate heightened financial risk and the need for careful management of the company's capital structure and debt levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -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 | 0.48 | 1.73 | 2.08 | 3.39 |
The interest coverage ratio for AdaptHealth Corp has been showing a decreasing trend over the past eight quarters. The ratio measures the company's ability to meet its interest payment obligations, with higher values indicating a stronger capacity to cover interest expenses.
The latest reported value for Q4 2023 is 1.78, which is a slight improvement from the previous quarter but still lower than the ratios reported in the earlier quarters. This suggests that the company's ability to cover its interest expenses has weakened over time.
The decreasing trend in the interest coverage ratio may raise concerns about the company's ability to meet its debt obligations through its operating income. It indicates that the company may be facing challenges in generating sufficient earnings to cover its interest expenses consistently.
It would be important for stakeholders and investors to closely monitor the trend in AdaptHealth Corp's interest coverage ratio to assess the company's financial health and its ability to service its debt in the future.