Chemed Corp (CHE)

Payables 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
Payables	US$ in thousands	64,034	41,884	73,024	54,234	51,101
Payables turnover		29.22	41.51	23.91	31.69	31.92

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,870,820K ÷ $64,034K
= 29.22

Chemed Corp.'s payables turnover has fluctuated over the past five years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to average accounts payable for a period.

In 2023, the payables turnover ratio decreased to 22.89 from 32.71 in 2022. This decline indicates that Chemed Corp. took longer to pay its suppliers in 2023 compared to the previous year. It could suggest a slower turnover of payables or a change in payment terms with suppliers.

In 2021, the company had a payables turnover of 18.75, lower than 2022 but higher than 2020. This suggests that the company improved its efficiency in managing payables in 2021 compared to the previous year.

Overall, the trend in payables turnover for Chemed Corp. shows some variability, indicating potential changes in the company's relationship with suppliers or internal payment processes. Further investigation into the reasons behind these fluctuations would be necessary to fully understand the company's payables management efficiency.