Chemed Corp (CHE)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 272,509 | 249,624 | 268,550 | 319,466 | 219,923 |
| Total assets | US$ in thousands | 1,668,100 | 1,442,010 | 1,342,720 | 1,434,910 | 1,268,320 |
| ROA | 16.34% | 17.31% | 20.00% | 22.26% | 17.34% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $272,509K ÷ $1,668,100K
= 16.34%
Chemed Corp.'s return on assets (ROA) has shown a declining trend over the past five years. The ROA decreased from 22.26% in 2020 to 16.34% in 2023. This indicates that the company's ability to generate profits from its assets has weakened over time. The average ROA over the five-year period was 18.65%.
A lower ROA could suggest inefficiencies in asset utilization or declining profitability relative to the size of Chemed Corp.'s asset base. Investors and analysts may want to further investigate the factors driving this downward trend in ROA to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023