Chemed Corp (CHE)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,264,417	2,225,159	2,187,099	2,164,571	2,134,963	2,129,287	2,141,482	2,142,450	2,139,261	2,131,572	2,121,202	2,091,145	2,079,583	2,068,618	2,020,934	1,992,319	1,938,555	1,873,739	1,837,277	1,805,506
Property, plant and equipment	US$ in thousands	203,840	205,462	208,101	204,164	199,714	193,705	192,005	192,405	193,680	190,781	192,653	190,154	187,820	181,386	183,017	183,729	175,763	172,932	149,917	164,629
Fixed asset turnover		11.11	10.83	10.51	10.60	10.69	10.99	11.15	11.14	11.05	11.17	11.01	11.00	11.07	11.40	11.04	10.84	11.03	10.84	12.26	10.97

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,264,417K ÷ $203,840K
= 11.11

The fixed asset turnover ratio for Chemed Corp. has shown a consistent range between 10.51 and 11.15 over the past eight quarters. This ratio measures how efficiently the company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate sales.

Chemed Corp.'s fixed asset turnover has remained relatively stable, indicating a consistent level of efficiency in utilizing its fixed assets to generate revenue. The company's ability to maintain a fixed asset turnover ratio above 10 suggests strong operational efficiency and effective asset management.

Overall, Chemed Corp.'s fixed asset turnover ratio reflects a healthy and efficient use of its fixed assets to drive sales. This consistency in the ratio over time indicates a strong operational performance and effective utilization of the company's fixed assets.