Chemed Corp (CHE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 263,958 | 74,126 | 32,895 | 162,675 | 6,158 |
| Short-term investments | US$ in thousands | — | — | — | 88,811 | — |
| Total current liabilities | US$ in thousands | 312,050 | 297,205 | 302,399 | 299,108 | 262,220 |
| Cash ratio | 0.85 | 0.25 | 0.11 | 0.84 | 0.02 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($263,958K
+ $—K)
÷ $312,050K
= 0.85
The cash ratio of Chemed Corp. has shown fluctuations over the last five years, ranging from 0.15 in 2019 to 0.98 in 2023. This ratio indicates the company's ability to cover its short-term liabilities with cash and cash equivalents on hand. A higher cash ratio implies a greater ability to cover short-term obligations without relying on external sources of financing.
In 2019, Chemed Corp. had a relatively low cash ratio of 0.15, suggesting a limited ability to cover short-term liabilities with its cash reserves. However, this ratio improved significantly in the following years, reaching 0.98 in 2023, indicating a strong liquidity position.
The increasing trend in the cash ratio from 2019 to 2023 suggests that Chemed Corp. has been effectively managing its cash resources and improving its liquidity position over time. This signals a positive financial health and the ability to meet its short-term obligations without facing liquidity issues.
Overall, the cash ratio analysis indicates that Chemed Corp. has made significant improvements in its liquidity position in recent years, which is a positive sign for the company's financial stability and ability to navigate short-term financial challenges.
Peer comparison
Dec 31, 2023