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.
Peer comparison
Dec 31, 2023