Chemed Corp (CHE)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 301,999 272,509 249,624 268,550 319,466
Total assets US$ in thousands 1,668,580 1,668,100 1,442,010 1,342,720 1,434,910
ROA 18.10% 16.34% 17.31% 20.00% 22.26%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $301,999K ÷ $1,668,580K
= 18.10%

To analyze Chemed Corp's return on assets (ROA) over the five-year period from December 31, 2020, to December 31, 2024, we can see a gradual decline in ROA. The ROA was 22.26% in 2020, which decreased to 20.00% in 2021, further declining to 17.31% in 2022, and then to 16.34% in 2023. However, the ROA slightly improved in 2024 to 18.10%.

The decline in ROA over the years may indicate that Chemed Corp's ability to generate profits from its assets has weakened. It could be due to various factors such as increased expenses, lower revenue generation, or inefficient asset utilization. The slight improvement in 2024 suggests potential efforts to enhance asset efficiency or profitability.

It is essential for Chemed Corp to closely monitor and analyze the factors impacting its ROA to ensure sustainable financial performance and efficient asset management in the future.