Chemed Corp (CHE)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	430,825	382,536	377,849	370,102	353,092	353,578	318,970	306,118	326,941	343,496	358,821	373,967	357,513	352,182	401,721	387,701	412,491	398,345	332,882	318,863
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		38.50%	34.19%	30.58%	30.66%	29.83%	31.91%	31.29%	32.15%	37.15%	43.01%	49.74%	54.60%	53.62%	56.51%	51.52%	44.52%	44.41%	44.20%	41.54%	42.48%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $430,825K ÷ ($—K + $1,118,990K)
= 38.50%

Chemed Corp's return on total capital has shown fluctuations over the period from June 30, 2020, to March 31, 2025. The return on total capital started at 42.48% on June 30, 2020, and experienced slight variations over time, reaching a peak of 56.51% on December 31, 2021.

Subsequently, there was a gradual decline in the return on total capital, dropping to 29.83% on March 31, 2024. However, there was a slight recovery seen in the following periods. As of March 31, 2025, the return on total capital stood at 38.50%.

Overall, the return on total capital metric reflects the efficiency of Chemed Corp in generating returns from both its debt and equity capital. It is essential for investors and stakeholders to monitor this ratio as it indicates the company's ability to generate profits relative to the total capital invested. The fluctuation in this ratio over time may be influenced by various factors, including operational performance, capital structure, and market conditions.