Chemed Corp (CHE)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,668,100	1,442,010	1,342,720	1,434,910	1,268,320
Operating ROA		20.42%	23.82%	25.55%	27.16%	20.29%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $340,569K ÷ $1,668,100K
= 20.42%

Chemed Corp.'s operating return on assets (operating ROA) has exhibited variability over the past five years. The operating ROA ranged from 21.01% in 2019 to a peak of 25.62% in 2021. In the most recent year, as of December 31, 2023, the operating ROA stood at 20.55%. This indicates that for every dollar of assets the company holds, it generated $0.2055 in operating income. The downward trend in the operating ROA from 2021 to 2023 suggests a potential decrease in the company's operating efficiency or profitability relative to its asset base. Further analysis, considering factors such as changes in operating expenses or revenue, would be needed to fully understand the reasons behind this trend.