Chemed Corp (CHE)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	500,843	272,612	230,286	329,403	190,671
Total current liabilities	US$ in thousands	312,050	297,205	302,399	299,108	262,220
Current ratio		1.61	0.92	0.76	1.10	0.73

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $500,843K ÷ $312,050K
= 1.61

The current ratio of Chemed Corp. has exhibited significant fluctuations over the past five years. The ratio stood at 1.61 as of December 31, 2023, indicating that the company had $1.61 in current assets for every $1 in current liabilities, reflecting a healthy liquidity position. This represents a substantial improvement from the previous year's current ratio of 0.92, suggesting that Chemed Corp. has strengthened its ability to meet short-term obligations.

The current ratio has shown a volatile trend in recent years, with a notable increase from 0.76 in 2021 to 1.10 in 2020, followed by a decrease to 0.73 in 2019. These fluctuations may indicate varying levels of efficiency in managing current assets and liabilities within the organization.

Overall, the current ratio of Chemed Corp. has shown positive movement in 2023, signaling improved liquidity and the company's enhanced capacity to cover short-term obligations. Continued monitoring of this ratio will be essential to assess the company's financial health and its ability to meet near-term financial obligations.