Chemed Corp (CHE)

Financial leverage 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
Total assets	US$ in thousands	1,668,100	1,562,080	1,505,180	1,431,180	1,442,010	1,356,200	1,312,960	1,305,760	1,342,720	1,318,130	1,383,800	1,458,130	1,434,910	1,366,950	1,291,190	1,277,560	1,268,320	1,232,580	1,094,070	1,069,830
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
Financial leverage ratio		1.51	1.53	1.58	1.63	1.81	1.88	1.92	1.96	2.15	1.69	1.59	1.57	1.59	1.71	1.72	1.87	1.75	1.83	1.77	1.82

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,668,100K ÷ $1,107,880K
= 1.51

The financial leverage ratio of Chemed Corp. has been gradually decreasing from 1.96 in Q1 2022 to 1.51 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations over the past quarters. A lower financial leverage ratio suggests a lower level of financial risk and a stronger financial position, as the company has less debt in proportion to its equity. Chemed Corp. seems to be managing its capital structure effectively and moving towards a more conservative financing approach.

Peer comparison

Dec 31, 2023

Company name

Symbol

Financial leverage ratio

Chemed Corp

CHE

1.51

Adapthealth Corp

AHCO

2.86

Addus HomeCare Corporation

Option Care Health Inc

OPCH

2.26