Chemed Corp (CHE)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 366,493 340,569 343,496 343,038 389,680
Total assets US$ in thousands 1,668,580 1,668,100 1,442,010 1,342,720 1,434,910
Operating ROA 21.96% 20.42% 23.82% 25.55% 27.16%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $366,493K ÷ $1,668,580K
= 21.96%

Based on the data provided, Chemed Corp's operating return on assets (operating ROA) has shown a gradual decline over the period from December 31, 2020, to December 31, 2024.

The operating ROA decreased from 27.16% in 2020 to 25.55% in 2021, followed by a further decline to 23.82% in 2022 and 20.42% in 2023. In the most recent year of 2024, there was a slight improvement in the operating ROA to 21.96%.

This trend indicates a decrease in the company's operating efficiency in generating profit from its assets over the years. It is essential for Chemed Corp to closely evaluate and address the factors contributing to this declining trend to enhance its operational performance and overall profitability in the future.