Chemed Corp (CHE)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 394,748 500,843 272,612 230,286 329,403
Total current liabilities US$ in thousands 285,695 312,050 297,205 302,399 299,108
Current ratio 1.38 1.61 0.92 0.76 1.10

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $394,748K ÷ $285,695K
= 1.38

The current ratio of Chemed Corp has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 1.10, indicating that the company had just enough current assets to cover its current liabilities. However, by December 31, 2021, the current ratio decreased to 0.76, suggesting a potential liquidity issue as the company may struggle to meet its short-term obligations.

In the following years, there was a gradual improvement in the current ratio. By December 31, 2022, the ratio increased to 0.92, showing a slight improvement in the company's liquidity position. This trend continued as the current ratio further improved to 1.61 by December 31, 2023, indicating that Chemed Corp had more than enough current assets to cover its current liabilities.

However, by December 31, 2024, the current ratio declined to 1.38, although it still remained above 1.0, indicating that the company's current assets continued to exceed its current liabilities. Overall, the fluctuation in Chemed Corp's current ratio suggests varying levels of liquidity and the need for further monitoring to ensure the company's ability to meet short-term obligations.