Chemed Corp (CHE)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	340,569	343,496	343,038	389,680	257,380
Revenue	US$ in thousands	2,264,420	2,134,960	2,139,260	2,079,580	1,938,560
Operating profit margin		15.04%	16.09%	16.04%	18.74%	13.28%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $340,569K ÷ $2,264,420K
= 15.04%

The operating profit margin for Chemed Corp. has exhibited some variability over the past five years. The trend shows a slight decrease from 15.13% in 2020 to 13.75% in 2019, followed by an increase to 16.08% in 2021 and 16.26% in 2022, before decreasing slightly to 15.14% in 2023. Overall, the operating profit margin has been relatively stable, fluctuating within a range of around 2-3% over the period under review. It appears that the company has been able to effectively manage its operating expenses to generate operating profits, with the margins staying above 15% in recent years. Further analysis would be needed to understand the factors driving the changes in the operating profit margin and to assess Chemed Corp.'s profitability performance in more detail.