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.