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.
Peer comparison
Dec 31, 2023