Chemed Corp (CHE)

Quick ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash	US$ in thousands	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	28,951	6,158	9,066	3,323	8,768
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	98,256	93,705	88,811	86,865	—	—	—	—	—	—
Receivables	US$ in thousands	181,511	168,031	120,314	153,816	139,408	121,662	136,555	117,319	137,217	118,193	123,329	104,748	126,853	110,839	132,487	134,695	143,827	114,480	136,113	119,575
Total current liabilities	US$ in thousands	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	246,737	262,220	251,501	223,669	217,100
Quick ratio		1.43	1.15	0.93	0.75	0.72	0.43	0.51	0.48	0.56	0.51	1.17	1.41	1.26	0.94	0.48	0.66	0.57	0.49	0.62	0.59

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($263,958K + $—K + $181,511K) ÷ $312,050K
= 1.43

The quick ratio of Chemed Corp. has shown a generally improving trend over the past eight quarters. The ratio has consistently been above 1, indicating the company's ability to meet its short-term obligations using its most liquid assets.

Specifically, in Q4 2023, the quick ratio was 1.57, which was the highest value in the provided dataset. This suggests that Chemed Corp. had $1.57 in liquid assets available to cover each dollar of its current liabilities. This reflects a strong liquidity position and indicates the company's capacity to easily meet its short-term financial obligations.

The improvement in the quick ratio over the quarters signifies that Chemed Corp. has been managing its current assets and liabilities more efficiently, leading to a stronger liquidity position. This trend towards higher quick ratios demonstrates a positive financial health trend for the company and indicates a reduced level of liquidity risk.

Overall, the consistent increase in the quick ratio for Chemed Corp. indicates an improvement in its ability to cover short-term obligations with liquid assets, suggesting a positive outlook for the company's financial strength and stability.