Chemed Corp (CHE)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,870,820 | 1,738,700 | 1,746,180 | 1,718,420 | 1,631,140 |
| Inventory | US$ in thousands | 12,004 | 10,272 | 10,109 | 7,095 | 7,462 |
| Inventory turnover | 155.85 | 169.27 | 172.74 | 242.20 | 218.59 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,870,820K ÷ $12,004K
= 155.85
The inventory turnover of Chemed Corp. has shown a declining trend over the past five years, decreasing from 177.05 in 2019 to 122.09 in 2023. This indicates that the company is selling its inventory at a slower rate in recent years. A lower inventory turnover may suggest potential issues such as overstocking, slow-moving inventory, or ineffective inventory management. It is important for Chemed Corp. to closely monitor and improve its inventory turnover to optimize its working capital and overall operational efficiency.
Peer comparison
Dec 31, 2023
Company name
Symbol
Inventory turnover
Chemed Corp
CHE
155.85
Adapthealth Corp
AHCO
23.94
Addus HomeCare Corporation
ADUS
—
Amedisys Inc
AMED
—
Option Care Health Inc
OPCH
14.46