Chemed Corp (CHE)
Working capital 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 current assets | US$ in thousands | 394,748 | 500,843 | 272,612 | 230,286 | 329,403 |
| Total current liabilities | US$ in thousands | 285,695 | 312,050 | 297,205 | 302,399 | 299,108 |
| Working capital turnover | 22.29 | 11.99 | — | — | 68.64 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,431,290K ÷ ($394,748K – $285,695K)
= 22.29
The working capital turnover ratio for Chemed Corp provides insight into how efficiently the company is utilizing its working capital to generate revenue.
In 2020, the working capital turnover was exceptionally high at 68.64, indicating that the company was able to generate a significant amount of revenue relative to its working capital. However, the absence of data for 2021 and 2022 makes it challenging to assess the trend during those years.
The ratio sharply declined to 11.99 in 2023, suggesting a reduced efficiency in utilizing working capital to generate revenue. This decrease may indicate potential liquidity issues or inefficiencies in managing working capital.
In 2024, the working capital turnover improved to 22.29, showing a partial recovery in the efficiency of working capital utilization compared to 2023. It is essential for Chemed Corp to monitor and manage its working capital effectively to ensure optimal operations and financial performance in the future.
Peer comparison
Dec 31, 2024