Chemed Corp (CHE)

Debt-to-capital ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	—	—	—	16,250	92,500	95,850	111,800	120,000	185,000	—	—	—	—	—	—	160,000	90,000	130,000	85,000	100,000
Total stockholders’ equity	US$ in thousands	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	683,601	726,608	672,380	618,569	588,010
Debt-to-capital ratio		0.00	0.00	0.00	0.02	0.10	0.12	0.14	0.15	0.23	0.00	0.00	0.00	0.00	0.00	0.00	0.19	0.11	0.16	0.12	0.15

December 31, 2023 calculation

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

The debt-to-capital ratio of Chemed Corp. has shown a consistent decrease from 0.15 in Q1 2022 to 0.02 in Q1 2023, before reaching 0.00 in the latest quarters. This decreasing trend indicates that the company has been reducing its debt in relation to its total capital over the past eight quarters. A decrease in the debt-to-capital ratio is generally considered positive as it signifies a lower reliance on debt financing, which may lead to lower financial risk and increased financial stability. The recent trend of having a debt-to-capital ratio of 0.00 suggests that Chemed Corp. has little to no debt relative to its total capital, indicating a potentially strong financial position with more room for growth and flexibility in its capital structure.