Chemed Corp (CHE)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 178,350 263,958 74,126 32,895 162,675
Short-term investments US$ in thousands — — — — 88,811
Total current liabilities US$ in thousands 285,695 312,050 297,205 302,399 299,108
Cash ratio 0.62 0.85 0.25 0.11 0.84

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($178,350K + $—K) ÷ $285,695K
= 0.62

The cash ratio of Chemed Corp has fluctuated over the past five years.

- As of December 31, 2020, the cash ratio was 0.84, indicating that the company had $0.84 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong ability to cover short-term obligations with available cash.

- However, by December 31, 2021, the cash ratio had decreased significantly to 0.11. This sharp decline may raise concerns about the company's liquidity position and ability to meet immediate financial obligations.

- The cash ratio improved to 0.25 by December 31, 2022, indicating a slight recovery in the company's liquidity position. While still relatively low, this ratio suggests some improvement in the company's ability to cover its short-term liabilities with available cash.

- By December 31, 2023, the cash ratio had increased substantially to 0.85, signaling a strong improvement in Chemed Corp's liquidity position. This high ratio indicates a robust ability to meet short-term obligations with available cash reserves.

- The cash ratio slightly decreased to 0.62 by December 31, 2024. Although lower than the previous year, this ratio still suggests that the company maintains a healthy level of cash to cover its short-term liabilities.

Overall, Chemed Corp's cash ratio has shown significant fluctuations over the years, with periods of both strengths and weaknesses in its liquidity position. Monitoring this ratio over time can provide valuable insights into the company's financial health and ability to manage its short-term obligations effectively.