Chemed Corp (CHE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 42.09 | 1.51 | 1.81 | 2.15 | 1.59 |
Chemed Corp's solvency ratios indicate a strong financial position with negligible debt levels relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 from 2020 to 2024, suggesting that the company has effectively managed its debt and maintains a low level of financial leverage.
However, the Financial leverage ratio has shown significant fluctuations over the years, with a sharp increase in 2024 to 42.09 from relatively stable levels in earlier years. This sudden spike may indicate a one-time event or a change in the company's capital structure, warranting further investigation to understand the reason behind this anomaly.
Overall, Chemed Corp's solvency ratios reflect a strong balance sheet and a conservative approach towards managing its debt obligations, which bodes well for its long-term financial stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 225.42 | 113.73 | 72.92 | 188.53 | 169.15 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments.
For Chemed Corp, we observe fluctuations in its interest coverage ratio over the years:
- As of December 31, 2020, the interest coverage ratio was 169.15, indicating a high level of ability to meet interest obligations.
- By December 31, 2021, the interest coverage ratio increased further to 188.53, showing an even stronger capacity to cover interest expenses.
- However, in December 31, 2022, there was a notable decline in the interest coverage ratio to 72.92, which may suggest a potential strain in meeting interest payments.
- The ratio improved in the following years, reaching 113.73 by December 31, 2023, and significantly increasing to 225.42 by December 31, 2024.
Overall, Chemed Corp's interest coverage ratio has been fairly robust, with fluctuations in certain years. It is critical for investors and stakeholders to monitor these changes to assess the company's ability to manage its debt obligations and financial health effectively.