Chemed Corp (CHE)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 196.92 | 196.32 | 159.26 | 143.70 | 141.09 | 123.39 | 116.44 | 123.37 | 131.67 | 133.36 | 129.59 | 126.39 | 129.56 | 135.47 | 162.99 | 184.22 | 201.70 | 194.25 | 184.27 | 184.74 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 22.76 | 22.29 | 10.53 | 11.51 | 8.90 | 11.99 | 22.86 | 63.08 | — | — | — | — | — | — | — | 1,259.62 | 36.84 | 68.64 | — | — |
Chemed Corp's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.
1. Inventory Turnover: Chemed Corp's inventory turnover has shown some fluctuation over the years. The company maintained a high inventory turnover ratio in the range of 184 to 201 from June 2020 to March 2023. However, there was a gradual decline in the ratio from March 2023 to June 2024, with a significant spike in the ratio in December 2024 and March 2025 to 196 and 197, respectively. This indicates that the company is efficiently managing its inventory levels.
2. Receivables Turnover: No data is provided for Chemed Corp's receivables turnover, suggesting that information on how quickly the company collects outstanding receivables is not available for analysis.
3. Payables Turnover: Similar to receivables turnover, no data is provided for Chemed Corp's payables turnover, indicating that information on how quickly the company pays its suppliers is not available for analysis.
4. Working Capital Turnover: Chemed Corp's working capital turnover ratio provides insights into how effectively the company utilizes its working capital to generate sales. The company showed a significant increase in the ratio from December 2020 to June 2021, reaching a peak of 1,260. This indicates that Chemed Corp efficiently utilized its working capital during this period. However, the ratio declined in December 2023 but saw a slight improvement in March 2024 and remained relatively stable until March 2025.
Overall, Chemed Corp's activity ratios suggest that the company effectively manages its inventory levels and working capital, but more information on receivables and payables turnover would provide a more comprehensive analysis of the company's operational efficiency.
Average number of days
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.85 | 1.86 | 2.29 | 2.54 | 2.59 | 2.96 | 3.13 | 2.96 | 2.77 | 2.74 | 2.82 | 2.89 | 2.82 | 2.69 | 2.24 | 1.98 | 1.81 | 1.88 | 1.98 | 1.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Chemed Corp have shown a somewhat increasing trend over the analyzed periods, reaching 2.54 days as of June 30, 2024, before declining to 1.85 days as of March 31, 2025. This indicates that the company has, on average, enough inventory to last for around 2.54 days to 1.85 days based on the corresponding sales.
On the other hand, the Days of Sales Outstanding (DSO) and the Number of Days of Payables data are not provided or available for analysis, which limits our ability to assess Chemed Corp's collection and payment efficiency.
Overall, the DOH ratio is a key measure of inventory management efficiency, and the decreasing trend from June 2022 to March 2025 suggests that Chemed Corp has been efficiently managing its inventory levels. However, a complete analysis of the activity ratios would require data on DSO and payables turnover to provide a more comprehensive view of the company's working capital management.
Long-term
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 6.77 | 10.51 | 10.60 | 6.37 | 6.55 | 6.69 | 11.14 | 6.71 | 6.71 | 6.72 | 11.00 | 11.07 | 11.40 | 11.04 |
| Total asset turnover | 1.49 | 1.46 | 1.34 | 1.35 | 1.33 | 1.29 | 1.42 | 1.45 | 1.51 | 1.48 | 1.57 | 1.63 | 1.64 | 1.59 | 1.62 | 1.53 | 1.43 | 1.45 | 1.51 | 1.57 |
Chemed Corp's fixed asset turnover ratio measures the efficiency of the company in generating revenue from its fixed assets. The trend in the fixed asset turnover ratio shows fluctuations over the periods analyzed. From June 2020 to March 2025, the ratio ranged from a high of 11.40 to a low of 6.37. In recent periods, there seems to be a declining trend in the fixed asset turnover ratio, indicating that the company may be less efficient in utilizing its fixed assets to generate sales.
Furthermore, the total asset turnover ratio, which indicates how efficiently the company is utilizing all its assets to generate revenue, also shows variability over the periods studied. The ratio ranged from 1.29 to 1.64 during the period from June 2020 to March 2025. In the later periods, there appears to be a slight decrease in the total asset turnover ratio, suggesting that the company might be experiencing challenges in generating sales relative to its total asset base.
Overall, the analysis of Chemed Corp's long-term activity ratios indicates that the company's efficiency in generating revenue from both its fixed and total assets has been fluctuating over the past few years. The declining trends in both fixed asset turnover and total asset turnover ratios in recent periods may warrant further investigation into the company's operational efficiency and asset utilization strategies.