Chemed Corp (CHE)

Short-term

Turnover ratios

Chemed Corp's inventory turnover shows a decreasing trend over the years, declining from 194.25 in 2020 to 122.28 in 2023 before slightly increasing to 192.47 in 2024. This might indicate potential inefficiencies in managing inventory levels or difficulties in selling goods.

The receivables turnover ratio is not provided for any of the years, which may suggest that Chemed Corp does not have significant trade receivables or that this data is not available.

Similarly, the payables turnover ratio is not available for any year, indicating a lack of information on how quickly Chemed Corp pays its suppliers.

Regarding working capital turnover, there is data only for 2020 and 2023. The ratio significantly decreased from 68.64 in 2020 to 11.99 in 2023, suggesting a decrease in the efficiency of using working capital to generate sales during this period. In 2024, the ratio improved to 22.29, indicating a better utilization of working capital to support revenue generation.

Overall, the analysis of Chemed Corp's activity ratios reveals fluctuations and missing data points that could impact the company's operational efficiency and financial performance.

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Average number of days

Chemed Corp's activity ratios provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- Chemed Corp's DOH has shown fluctuations over the years. In 2020, the company held inventory for approximately 1.88 days, which increased to 2.69 days in 2021 and further to 2.74 days in 2022. By 2024, the DOH decreased to 1.90 days. A lower DOH generally indicates efficient inventory management, as the company is able to turn over its inventory quickly.

2. Days of Sales Outstanding (DSO):
- The DSO data for Chemed Corp is not available for the years provided. DSO measures how quickly the company collects its accounts receivable. A lower DSO suggests efficient credit and collection policies.

3. Number of Days of Payables:
- The data for Chemed Corp's number of days of payables is not provided for the years in question. The number of days of payables reflects how quickly the company pays its suppliers. A higher number of days of payables may indicate better cash flow management, as the company delays payments to suppliers, providing more time to use cash for other activities.

Overall, analyzing these activity ratios can help assess Chemed Corp's operational efficiency and effectiveness in managing its inventory, receivables, and payables.

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Long-term

Chemed Corp's fixed asset turnover ratio has exhibited a declining trend from 2020 to 2022, indicating that the company is generating less revenue for each dollar invested in fixed assets. The ratio decreased from 11.07 in 2020 to 6.37 in 2022. It is concerning that no data is available for 2023 and 2024, which could suggest potential data reporting issues or changes in the company's asset base.

In contrast, the total asset turnover ratio of Chemed Corp has shown a relatively stable performance with some fluctuation. The ratio increased from 1.45 in 2020 to 1.59 in 2021 before declining to 1.48 in 2022 and further to 1.36 in 2023, and then slightly recovering to 1.46 in 2024. This indicates that the company is efficiently utilizing its total assets to generate revenue, although there was a slight decrease in asset utilization in 2023.

Overall, the declining trend in fixed asset turnover suggests potential inefficiencies in the utilization of fixed assets, which can impact profitability and operational effectiveness. However, the relatively stable total asset turnover indicates that Chemed Corp is managing its total assets effectively to generate revenue, although there are fluctuations in asset utilization over the years.