Chemed Corp (CHE)

Cash ratio

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 178,350 178,350 238,451 222,903 313,350 263,958 173,150 159,924 58,054 74,126 7,781 9,640 18,160 32,895 28,743 92,120 210,156 162,675 112,765 20,376
Short-term investments US$ in thousands — — — — — — — — — — — — — — — 98,256 93,705 88,811 86,865 —
Total current liabilities US$ in thousands 285,695 285,695 264,779 261,753 281,974 312,050 297,219 302,487 283,460 297,205 298,150 285,068 279,651 302,399 286,086 267,402 290,215 299,108 329,163 318,516
Cash ratio 0.62 0.62 0.90 0.85 1.11 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

March 31, 2025 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 shown some fluctuations over the past few years, ranging from a low of 0.03 to a high of 1.11. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has more cash on hand relative to its current liabilities, which is a positive sign for liquidity and financial stability.

Analyzing the trend, we can see that the cash ratio improved from June 2020 to March 2021, reaching its peak at 1.11. This indicates that Chemed Corp had a strong ability to cover its short-term obligations with cash during this period. However, the cash ratio decreased in the following quarters, fluctuating between 0.03 and 0.90 until March 2025.

Overall, Chemed Corp's cash ratio has shown variability, but it has generally remained above 0.50 since September 2023, which suggests that the company has maintained a relatively strong liquidity position throughout this period. Investors and analysts should continue to monitor the company's cash ratio to assess its short-term liquidity and ability to meet financial obligations.