Chemed Corp (CHE)
Debt-to-equity 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-equity ratio | 0.00 | 0.12 | 0.30 | 0.00 | 0.12 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,107,880K
= 0.00
The debt-to-equity ratio of Chemed Corp. has fluctuated over the past five years. In 2023 and 2020, the company had a debt-to-equity ratio of 0.00, indicating that it had no debt during those years and relied solely on equity to finance its operations. This could suggest a conservative financial strategy or strong cash reserves.
In 2022, the debt-to-equity ratio increased to 0.12, indicating a slight increase in debt compared to the previous year. However, the ratio remained relatively low, suggesting that the company's debt levels were still modest compared to its equity.
The highest debt-to-equity ratio was observed in 2021 at 0.30, which indicates a higher level of debt relative to equity compared to the other years. This could imply increased leverage or borrowing during that period, potentially for strategic investments or expansion.
In 2019, the debt-to-equity ratio was 0.14, signaling a moderate level of debt compared to equity, which may indicate a balanced capital structure.
Overall, the trend in Chemed Corp.'s debt-to-equity ratio reflects varying levels of leverage over the years, with 2023 and 2020 standing out as years with minimal to no debt on the company's balance sheet. Investors and stakeholders may consider the company's changing debt levels when evaluating its financial risk and stability.
Peer comparison
Dec 31, 2023