Chemed Corp (CHE)

Working capital turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,264,417	2,225,159	2,187,099	2,164,571	2,134,963	2,129,287	2,141,482	2,142,450	2,139,261	2,131,572	2,121,202	2,091,145	2,079,583	2,068,618	2,020,934	1,992,319	1,938,555	1,873,739	1,837,277	1,805,506
Total current assets	US$ in thousands	500,843	394,539	337,160	262,221	272,612	198,869	203,146	184,751	230,286	200,564	269,086	346,974	329,403	270,596	189,307	198,815	190,671	167,795	180,178	159,155
Total current liabilities	US$ in thousands	312,050	297,219	302,487	283,460	297,205	298,150	285,068	279,651	302,399	286,086	267,402	290,215	299,108	329,163	318,516	246,737	262,220	251,501	223,669	217,100
Working capital turnover		11.99	22.86	63.08	—	—	—	—	—	—	—	1,259.62	36.84	68.64	—	—	—	—	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,264,417K ÷ ($500,843K – $312,050K)
= 11.99

Chemed Corp.'s working capital turnover has shown a significant fluctuation over the past eight quarters. The latest available data for Q4 2023 indicates a working capital turnover of 11.99. Despite the lack of data for Q1 2023, the trend in the previous quarters shows an increasing pattern from Q2 2023 to Q4 2023.

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher working capital turnover ratio typically indicates strong operational efficiency and effective management of working capital components, such as inventory and accounts receivable.

In the case of Chemed Corp., the fluctuating trend in working capital turnover may suggest varying levels of efficiency in utilizing its working capital over time. Further analysis and comparison with industry benchmarks and historical data would be necessary to understand the underlying reasons behind these fluctuations and assess the overall financial health and performance of the company.