Chemed Corp (CHE)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 92,500 | 185,000 | — | 90,000 |
| Total assets | US$ in thousands | 1,668,100 | 1,442,010 | 1,342,720 | 1,434,910 | 1,268,320 |
| Debt-to-assets ratio | 0.00 | 0.06 | 0.14 | 0.00 | 0.07 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,668,100K
= 0.00
The debt-to-assets ratio of Chemed Corp. has shown fluctuating trends over the past five years. In 2023, the company's debt-to-assets ratio stood at 0.00, indicating that the company had no debt relative to its total assets. This could imply a strong financial position with less reliance on debt financing in the current year.
Comparing this to the previous year, in 2022, the debt-to-assets ratio was 0.07, signifying that Chemed Corp. had a relatively low level of debt compared to its assets. The decrease in the ratio from 0.07 in 2022 to 0.00 in 2023 suggests that the company may have either reduced its debt or increased its asset base during the year.
In 2021, the debt-to-assets ratio was higher at 0.14, indicating that a greater portion of the company's assets were financed by debt in that year. However, by 2023, the ratio had decreased significantly to 0.00, which may suggest that Chemed Corp. has actively managed its debt levels or grown its assets without incurring additional debt.
The debt-to-assets ratio was also 0.00 in 2020, implying no debt on the company's balance sheet in that year. In 2019, the ratio was 0.08, indicating a moderate level of debt relative to assets.
Overall, the decreasing trend in the debt-to-assets ratio from 0.14 in 2021 to 0.00 in 2023 could reflect Chemed Corp.'s efforts to improve its financial leverage and strengthen its balance sheet by either paying down debt or increasing asset levels during this period.
Peer comparison
Dec 31, 2023