Chemed Corp (CHE)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,431,290 | 2,264,420 | 2,134,960 | 2,139,260 | 2,079,580 |
| Total assets | US$ in thousands | 1,668,580 | 1,668,100 | 1,442,010 | 1,342,720 | 1,434,910 |
| Total asset turnover | 1.46 | 1.36 | 1.48 | 1.59 | 1.45 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,431,290K ÷ $1,668,580K
= 1.46
Chemed Corp's total asset turnover ratio indicates the company's efficiency in generating sales revenue relative to its total assets over the years. The trend for Chemed Corp's total asset turnover from December 31, 2020, to December 31, 2024, shows some fluctuation.
The total asset turnover ratio was 1.45 in 2020, indicating that for each dollar of total assets, the company generated $1.45 in sales. This ratio increased to 1.59 in 2021, suggesting a higher efficiency in asset utilization to generate revenue. However, in 2022, the ratio decreased to 1.48, and further declined to 1.36 in 2023, indicating a potential decrease in sales generated per dollar of total assets during those years.
In 2024, the total asset turnover ratio showed a slight improvement to 1.46, although it remained below the 2021 level. This could suggest a moderate enhancement in the company's efficiency in utilizing its assets to generate sales revenue.
Overall, the fluctuation in Chemed Corp's total asset turnover ratio over the years may indicate varying levels of efficiency in managing and utilizing its assets to drive sales. Further analysis of the company's operational and financial performance is recommended to gain a deeper understanding of the factors influencing this ratio's movement.
Peer comparison
Dec 31, 2024