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.
Peer comparison
Dec 31, 2023