Chemed Corp (CHE)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,264,420 | 2,134,960 | 2,139,260 | 2,079,580 | 1,938,560 |
| Total current assets | US$ in thousands | 500,843 | 272,612 | 230,286 | 329,403 | 190,671 |
| Total current liabilities | US$ in thousands | 312,050 | 297,205 | 302,399 | 299,108 | 262,220 |
| Working capital turnover | 11.99 | — | — | 68.64 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,264,420K ÷ ($500,843K – $312,050K)
= 11.99
Chemed Corp.'s working capital turnover ratio provides insight into how efficiently the company is utilizing its working capital to generate sales revenue. The working capital turnover ratio for Chemed Corp. was 11.99 in 2023 and 68.64 in 2020, reflecting a significant decrease in efficiency over this period.
A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital, which is generally seen as positive. Conversely, a lower ratio suggests that the company may have excess working capital tied up in operations relative to its sales.
The absence of data for 2022 and 2021 hinders a complete trend analysis. However, the substantial drop from 2020 to 2023 may indicate a decline in operational efficiency or changes in the company's working capital management. Further investigation into Chemed Corp.'s working capital practices and business operations would be necessary to gain a better understanding of the factors influencing this ratio.
Peer comparison
Dec 31, 2023