Chemed Corp (CHE)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	340,569	310,502	304,509	326,941	343,496	360,198	372,210	351,971	343,038	388,258	369,697	390,758	389,680	323,883	314,503	287,271	257,380	247,309	244,094	236,707
Revenue (ttm)	US$ in thousands	2,264,417	2,225,159	2,187,099	2,164,571	2,134,963	2,129,287	2,141,482	2,142,450	2,139,261	2,131,572	2,121,202	2,091,145	2,079,583	2,068,618	2,020,934	1,992,319	1,938,555	1,873,739	1,837,277	1,805,506
Operating profit margin		15.04%	13.95%	13.92%	15.10%	16.09%	16.92%	17.38%	16.43%	16.04%	18.21%	17.43%	18.69%	18.74%	15.66%	15.56%	14.42%	13.28%	13.20%	13.29%	13.11%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $340,569K ÷ $2,264,417K
= 15.04%

Chemed Corp.'s operating profit margin has shown a gradual decline over the past four quarters, starting at 16.26% in Q4 2022 and dropping to 15.14% in Q4 2023. This downward trend indicates a decrease in the company's ability to generate profits from its core operations relative to its revenue. The average operating profit margin for the eight quarters is 15.80%.

Factors that may have contributed to this decline could include increasing operating expenses, pricing pressures, or a decrease in sales volume. It is essential for Chemed Corp. to closely monitor and manage its expenses, improve operational efficiency, and potentially explore strategies to enhance revenue generation in order to reverse this trend and improve its profitability in the future.