Chemed Corp (CHE)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,668,100	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	1,277,560	1,268,320	1,232,580	1,094,070	1,069,830
Operating ROA		20.42%	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%	22.49%	20.29%	20.06%	22.31%	22.13%

December 31, 2023 calculation

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

Chemed Corp.'s operating return on assets (ROA) has been relatively stable over the past eight quarters, ranging from a high of 28.33% in Q2 2022 to a low of 20.28% in Q3 2023. The company's operating ROA trended downwards from 26.98% in Q1 2022 to 20.28% in Q3 2023 before showing a slight increase to 20.55% in Q4 2023. This indicates that Chemed Corp. may be facing challenges in effectively utilizing its assets to generate operating income.

Overall, Chemed Corp.'s operating ROA remains healthy, hovering around the 20-28% range, which suggests that the company is efficiently generating operating income relative to its total assets. However, management should closely monitor the trend in operating ROA to ensure that asset utilization is optimized for sustained profitability.