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.
Peer comparison
Dec 31, 2023