Chemed Corp (CHE)
Interest coverage
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 430,825 | 382,536 | 377,849 | 370,102 | 353,092 | 353,578 | 318,970 | 306,118 | 326,941 | 343,496 | 358,821 | 373,967 | 357,513 | 352,182 | 401,721 | 387,701 | 412,491 | 398,345 | 332,882 | 318,863 |
| Interest expense (ttm) | US$ in thousands | 1,854 | 1,780 | 1,623 | 1,640 | 1,982 | 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 |
| Interest coverage | 232.38 | 214.91 | 232.81 | 225.67 | 178.15 | 113.76 | 73.04 | 58.94 | 61.40 | 74.93 | 102.29 | 132.61 | 155.64 | 188.53 | 237.28 | 260.38 | 234.24 | 169.15 | 106.08 | 83.91 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $430,825K ÷ $1,854K
= 232.38
Chemed Corp's interest coverage ratio has fluctuated over the years based on the provided data. As of March 31, 2025, the interest coverage ratio stands at 232.38, indicating that the company's ability to cover its interest expenses improved significantly.
Looking at the trend from June 30, 2020, to March 31, 2025, we observe that the interest coverage ratio initially increased steadily from 83.91 to its peak at 260.38 on June 30, 2021. Subsequently, there was some volatility in the ratio, experiencing fluctuations but generally staying above 100 until December 31, 2022.
From March 31, 2023, to March 31, 2025, the interest coverage ratio exhibited a declining trend, dropping from 178.15 to 232.38. This downward trajectory might indicate a potential concern regarding the company's ability to cover its interest payments comfortably in the future.
Overall, it is crucial for stakeholders to monitor Chemed Corp's interest coverage ratio closely to ensure the company can meet its interest obligations and maintain financial stability.
Peer comparison
Mar 31, 2025