Chemed Corp (CHE)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	353,475	321,541	305,574	321,467	334,263	346,914	365,175	353,651	352,182	401,721	387,701	412,491	398,345	332,882	318,863	284,130	266,144	249,399	245,448	239,086
Interest expense (ttm)	US$ in thousands	3,108	4,367	5,194	5,325	4,584	3,508	2,820	2,297	1,868	1,693	1,489	1,761	2,355	3,138	3,800	4,386	4,535	4,579	4,620	4,907
Interest coverage		113.73	73.63	58.83	60.37	72.92	98.89	129.49	153.96	188.53	237.28	260.38	234.24	169.15	106.08	83.91	64.78	58.69	54.47	53.13	48.72

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $353,475K ÷ $3,108K
= 113.73

The interest coverage for Chemed Corp. has shown some fluctuations over the past four quarters. In Q4 2022, the interest coverage was at its highest level of 181.72, indicating that the company generated 181.72 times more operating income than the interest expense during that period.

However, there was a notable decline in the interest coverage in subsequent quarters, with Q3 2023 showing a sharp decrease to 220.30. The interest coverage then stabilized around the 60-80 range in Q2 and Q1 2023, indicating that the company's ability to cover its interest payments slightly weakened.

Overall, while Chemed Corp. has demonstrated strong interest coverage historically, there has been some recent volatility in this ratio which may warrant further monitoring to ensure the company's ability to meet its interest obligations.