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.
Peer comparison
Dec 31, 2023