Chemed Corp (CHE)

Current 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
Total current assets US$ in thousands 394,748 394,748 490,437 464,612 539,617 500,843 394,539 337,160 262,221 272,612 198,869 203,146 184,751 230,286 200,564 269,086 346,974 329,403 270,596 189,307
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
Current ratio 1.38 1.38 1.85 1.78 1.91 1.61 1.33 1.11 0.93 0.92 0.67 0.71 0.66 0.76 0.70 1.01 1.20 1.10 0.82 0.59

March 31, 2025 calculation

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

Chemed Corp's current ratio has fluctuated over the past few years, indicating its ability to meet its short-term obligations. The current ratio was relatively low at 0.59 as of June 30, 2020, showing potential liquidity concerns. However, it improved steadily to reach 1.91 as of March 31, 2024, reflecting a stronger short-term liquidity position.

The company's current ratio peaked at 1.91 in March 31, 2024, suggesting it had more than enough current assets to cover its current liabilities at that point in time. Subsequently, the ratio declined to 1.38 as of December 31, 2024, which may indicate a slight decrease in liquidity but still shows the company's ability to meet its short-term obligations comfortably.

Overall, Chemed Corp's current ratio trended upward, showing improvement in liquidity and the company's ability to pay off its short-term debts. The ratio exceeding 1 indicates a healthy financial position in terms of liquidity, providing reassurance to stakeholders and creditors about the company's ability to manage its short-term financial obligations effectively.