Chemed Corp (CHE)

Operating return on assets (Operating ROA)

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 408,038 366,493 364,009 358,702 340,083 340,569 310,502 304,509 326,941 343,496 360,198 372,210 351,971 343,038 388,258 369,697 390,758 389,680 323,883 314,503
Total assets US$ in thousands 1,668,580 1,668,580 1,769,440 1,734,980 1,727,630 1,760,790 1,562,080 1,505,180 1,431,180 1,442,010 1,356,200 1,312,960 1,305,760 1,342,720 1,318,130 1,383,800 1,458,130 1,434,910 1,366,950 1,291,190
Operating ROA 24.45% 21.96% 20.57% 20.67% 19.68% 19.34% 19.88% 20.23% 22.84% 23.82% 26.56% 28.35% 26.96% 25.55% 29.46% 26.72% 26.80% 27.16% 23.69% 24.36%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $408,038K ÷ $1,668,580K
= 24.45%

Chemed Corp's operating return on assets (operating ROA) has shown variability over the reported periods. The ratio ranged from a high of 29.46% on September 30, 2021, to a low of 19.34% on December 31, 2023. This indicates fluctuations in the company's operational efficiency in generating profit from its assets.

Despite the fluctuations, the operating ROA for Chemed Corp generally remained healthy, with most periods showing ratios above 20%. This suggests that the company has been effective in utilizing its assets to generate operating income. Investors and stakeholders may find this consistent performance reassuring, as it indicates the company's ability to generate returns from its operational activities.

It is noteworthy that the operating ROA experienced a slight upward trend from the end of 2023 through the first quarter of 2025, reaching a high of 24.45% on March 31, 2025. This could imply improved operational efficiency or better asset utilization during this period.

Overall, the operating ROA trend for Chemed Corp reflects the company's ability to generate profits from its assets over the reported periods, with fluctuations that may be influenced by factors such as operational efficiency, asset management, or changes in the business environment. Monitoring this ratio over time can provide insights into the company's operational performance and efficiency in utilizing its assets.