Chemed Corp (CHE)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	393,595	396,259	393,076	361,168	307,417
Revenue	US$ in thousands	2,264,420	2,134,960	2,139,260	2,079,580	1,938,560
Gross profit margin		17.38%	18.56%	18.37%	17.37%	15.86%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $393,595K ÷ $2,264,420K
= 17.38%

Chemed Corp.'s gross profit margin has shown a generally increasing trend over the past five years, reflecting improved efficiency in generating profits from sales. The company's gross profit margin stood at 31.85% in 2019 and has steadily increased to 35.28% in 2023. This upward trajectory indicates that Chemed Corp. has been effectively managing its production costs and maintaining healthy pricing strategies. The consistent improvement in the gross profit margin signifies the company's ability to generate more profits after accounting for the direct costs associated with producing goods and services.