Chemed Corp (CHE)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,264,420	2,134,960	2,139,260	2,079,580	1,938,560
Property, plant and equipment	US$ in thousands	203,840	199,714	193,680	187,820	175,763
Fixed asset turnover		11.11	10.69	11.05	11.07	11.03

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,264,420K ÷ $203,840K
= 11.11

The fixed asset turnover ratio for Chemed Corp. has been relatively stable over the past five years, ranging from 10.69 to 11.11. This indicates that the company generates between $10.69 to $11.11 in sales for every dollar invested in fixed assets.

A high fixed asset turnover ratio suggests that Chemed Corp. is effectively utilizing its fixed assets to generate sales revenue. Consistently high ratios over the years indicate that the company is efficiently managing its fixed assets to generate sales, which can lead to higher profitability and return on investment.

Overall, the trend in Chemed Corp.'s fixed asset turnover ratio suggests that the company has been successful in efficiently utilizing its fixed assets to drive sales and generate revenue.