Chemed Corp (CHE)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,107,880	798,715	623,273	901,200	726,608
Debt-to-capital ratio		0.00	0.10	0.23	0.00	0.11

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,107,880K)
= 0.00

Chemed Corp.'s debt-to-capital ratio has shown varying trends over the past five years. In 2023, the ratio decreased significantly to 0.00, indicating that the company had no debt relative to its capital structure. This may suggest a conservative financial strategy and lower financial risk.

In 2022, the ratio was 0.11, suggesting that Chemed Corp. had a relatively low level of debt compared to its capital. However, there was a notable increase from 2022 to 2021, where the ratio spiked to 0.23. This increase could indicate a higher reliance on debt financing during that period.

In both 2020 and 2019, the debt-to-capital ratio was at 0.00 and 0.12, respectively. The ratio being 0.00 in 2020 and 2019 indicates that the company had no debt or very low debt in relation to its capital structure, highlighting a strong financial position in those years.

Overall, the fluctuation in Chemed Corp.'s debt-to-capital ratio over the years suggests changes in the company's capital structure and financing decisions. The decreasing trend from 2021 to 2023 indicates a decrease in the company's debt levels, potentially lowering financial risk and improving financial stability.