Chemed Corp (CHE)

Payables 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
Cost of revenue (ttm)	US$ in thousands	1,870,822	1,858,538	1,827,504	1,782,998	1,738,704	1,720,507	1,720,962	1,740,619	1,746,185	1,739,638	1,735,814	1,728,159	1,718,415	1,719,241	1,696,703	1,657,520	1,631,172	1,577,681	1,545,151	1,521,696
Payables	US$ in thousands	64,034	56,508	41,058	40,279	41,884	77,170	73,975	64,710	73,024	60,042	55,975	55,447	54,234	39,268	36,704	37,838	51,101	44,027	51,143	39,737
Payables turnover		29.22	32.89	44.51	44.27	41.51	22.30	23.26	26.90	23.91	28.97	31.01	31.17	31.69	43.78	46.23	43.81	31.92	35.83	30.21	38.29

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,870,822K ÷ $64,034K
= 29.22

The payables turnover ratio for Chemed Corp. has been fluctuating over the past few quarters, with values ranging from 17.58 to 35.11.

In Q2 and Q3 of 2023, the company's payables turnover ratio showed a significant increase compared to the previous quarters, reaching 35.11 and 25.78, respectively. This may indicate that Chemed Corp. has been managing its accounts payable more efficiently during these periods, possibly by paying off its suppliers at a faster rate.

However, the payables turnover ratio decreased slightly in Q4 2023 to 22.89, although it still remains relatively high compared to the earlier quarters of 2022. This slight decrease may suggest a small slowdown in the company's efficiency in paying its suppliers during the most recent quarter.

Overall, the trend in Chemed Corp.'s payables turnover ratio indicates varying levels of effectiveness in managing its accounts payable obligations. It is important for stakeholders to continue monitoring this ratio to assess the company's liquidity and efficiency in managing its working capital.