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.