Chemed Corp (CHE)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 39,645 1,107,880 798,715 623,273 901,200
ROE 761.76% 24.60% 31.25% 43.09% 35.45%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $301,999K ÷ $39,645K
= 761.76%

Chemed Corp's return on equity (ROE) has shown fluctuations over the past five years. The ROE increased from 35.45% in December 2020 to 43.09% in December 2021, indicating improved profitability in the company. However, the ROE decreased to 31.25% by December 2022, suggesting a decline in the company's ability to generate profits relative to its shareholder equity.

In December 2023, the ROE further dropped to 24.60%, indicating a continuation of the declining trend in profitability. The sudden increase to 761.76% in December 2024 raises concerns as it seems like an outlier that may be influenced by certain factors like accounting adjustments or extraordinary gains.

Overall, the fluctuating ROE of Chemed Corp suggests a variable performance in terms of generating profits from the shareholders' equity over the past five years. It would be important to further investigate the reasons behind these fluctuations to assess the company's financial health accurately.