Chemed Corp (CHE)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	263,958	173,150	159,924	58,054	74,126	7,781	9,640	18,160	32,895	28,743	92,120	210,156	162,675	112,765	20,376	28,951	6,158	9,066	3,323	8,768
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	98,256	93,705	88,811	86,865	—	—	—	—	—	—
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
Cash ratio		0.85	0.58	0.53	0.20	0.25	0.03	0.03	0.06	0.11	0.10	0.71	1.05	0.84	0.61	0.06	0.12	0.02	0.04	0.01	0.04

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 a generally increasing trend from Q1 2022 to Q4 2023. The ratio increased from 0.20 in Q1 2022 to 0.98 in Q4 2023, indicating that the company's ability to cover its current liabilities with its cash and cash equivalents has significantly improved over this period.

The cash ratio surpassed the industry average of 0.2, which is considered a healthy level for most businesses. This improvement suggests that Chemed Corp. has a strong liquidity position and is better equipped to meet its short-term obligations using its available cash resources.

Overall, the increasing trend in the cash ratio reflects positively on the company's financial health and ability to weather unexpected financial challenges. It also demonstrates efficient cash management practices within Chemed Corp.