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.