Chemed Corp (CHE)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,107,880	798,715	623,273	901,200	726,608
ROE		24.60%	31.25%	43.09%	35.45%	30.27%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $272,509K ÷ $1,107,880K
= 24.60%

Chemed Corp.'s Return on Equity (ROE) has shown fluctuations over the past five years. In 2021, the company achieved the highest ROE of 43.09%, reflecting efficient utilization of shareholder equity to generate profits. However, the ROE experienced a decline in subsequent years, reaching 24.60% in 2023.

The decreasing trend in ROE from 2021 to 2023 indicates less effective management of equity to generate earnings. It is crucial for Chemed Corp. to assess the reasons behind this decline and strategize to enhance ROE in the future.

Overall, while Chemed Corp. has exhibited strong ROE levels historically, the recent decrease warrants attention to ensure sustainable profitability and shareholder value creation in the long term.