Chemed Corp (CHE)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	350,367	329,679	350,314	395,990	261,609
Revenue	US$ in thousands	2,264,420	2,134,960	2,139,260	2,079,580	1,938,560
Pretax margin		15.47%	15.44%	16.38%	19.04%	13.50%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $350,367K ÷ $2,264,420K
= 15.47%

Chemed Corp.'s pretax margin has shown some variability over the past five years. It decreased slightly from 15.44% in 2022 to 15.47% in 2023. Prior to this, there was another slight decline from 16.38% in 2021. The pretax margin was highest in 2020 at 19.04% and lowest in 2019 at 13.50%. This indicates that the company's ability to generate profits before accounting for taxes has fluctuated over the years, with a downward trend in recent years. Further analysis would be needed to understand the causes behind these fluctuations and to assess the sustainability of the company's profitability levels.

Peer comparison

Dec 31, 2023

Company name

Symbol

Pretax margin

Chemed Corp

CHE

15.47%

Adapthealth Corp

AHCO

-23.70%

Addus HomeCare Corporation

Option Care Health Inc

OPCH

8.44%