Chemed Corp (CHE)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	401,245	353,475	334,263	352,182	398,345
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	39,645	1,107,880	798,715	623,273	901,200
Return on total capital		1,012.09%	31.91%	41.85%	56.51%	44.20%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $401,245K ÷ ($—K + $39,645K)
= 1,012.09%

Chemed Corp's return on total capital has fluctuated significantly over the years, ranging from 31.91% to an exceptionally high 1,012.09%. The return on total capital was notably strong at 56.51% as of December 31, 2021. However, there was a substantial decline to 41.85% by December 31, 2022, and further decreased to 31.91% by December 31, 2023. The most recent data as of December 31, 2024, shows a remarkable spike in the return on total capital to an extraordinary 1,012.09%. Such extreme fluctuations may raise questions about the sustainability and reliability of the company's performance and may warrant further investigation into the underlying factors driving these fluctuations.