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.
Peer comparison
Dec 31, 2023