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.
Peer comparison
Dec 31, 2023