Chemed Corp (CHE)

Return on equity (ROE)

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Net income (ttm) US$ in thousands 327,301 301,999 301,733 300,915 283,405 272,509 244,582 226,497 239,576 249,624 262,123 277,253 267,319 268,550 307,677 303,396 328,975 319,466 271,294 262,519
Total stockholders’ equity US$ in thousands 1,118,990 1,118,990 1,235,760 1,207,300 1,183,500 1,107,880 1,019,240 952,079 880,053 798,715 721,416 684,960 666,705 623,273 779,719 870,774 928,884 901,200 801,408 750,696
ROE 29.25% 26.99% 24.42% 24.92% 23.95% 24.60% 24.00% 23.79% 27.22% 31.25% 36.33% 40.48% 40.10% 43.09% 39.46% 34.84% 35.42% 35.45% 33.85% 34.97%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $327,301K ÷ $1,118,990K
= 29.25%

Chemed Corp's return on equity (ROE) has shown fluctuations over the periods indicated. The ROE was relatively stable in the range of 33% to 35% from June 2020 to March 2021. Thereafter, it increased significantly, reaching a peak of 43.09% by December 2021. This could indicate improved efficiency in generating profits from shareholders' equity.

However, from March 2022 onwards, the ROE started to decline, dropping to 23.79% by June 2023. This downward trend continued until December 2024, with ROE bottoming out at 24.42%. This decrease in ROE could suggest challenges in maintaining profitability in relation to the shareholders' equity during this period.

By March 2025, the ROE showed a slight recovery, rising to 29.25%. It is important for Chemed Corp to closely monitor and address the factors influencing the ROE in order to sustain or improve its profitability relative to the equity invested by shareholders.