Chemed Corp (CHE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,668,580 | 1,668,100 | 1,442,010 | 1,342,720 | 1,434,910 |
| Total stockholders’ equity | US$ in thousands | 39,645 | 1,107,880 | 798,715 | 623,273 | 901,200 |
| Financial leverage ratio | 42.09 | 1.51 | 1.81 | 2.15 | 1.59 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,668,580K ÷ $39,645K
= 42.09
The financial leverage ratio of Chemed Corp has shown fluctuations over the years. It increased from 1.59 in December 31, 2020, to 2.15 in December 31, 2021, indicating higher reliance on debt to finance its operations. However, this ratio decreased to 1.81 by December 31, 2022, suggesting a reduction in debt relative to equity. The ratio then decreased significantly to 1.51 by December 31, 2023, implying a more conservative capital structure.
Interestingly, there was a sharp increase in the financial leverage ratio to 42.09 by December 31, 2024. This sudden spike might be due to a significant increase in debt compared to equity, which could potentially pose risks to the company's financial stability if not managed appropriately. Further investigation into the reasons for this extreme change in leverage is advisable to assess the potential impact on Chemed Corp's overall financial health and performance.
Peer comparison
Dec 31, 2024