Chemed Corp (CHE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.01 | 0.06 | 0.07 | 0.09 | 0.09 | 0.14 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | 0.07 | 0.11 | 0.08 | 0.09 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.02 | 0.10 | 0.12 | 0.14 | 0.15 | 0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.19 | 0.11 | 0.16 | 0.12 | 0.15 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.02 | 0.12 | 0.13 | 0.16 | 0.18 | 0.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.23 | 0.12 | 0.19 | 0.14 | 0.17 |
| 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 |
The solvency ratios of Chemed Corp. indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have been steadily decreasing over the quarters, reaching 0.00 in the most recent quarter Q4 2023. This suggests that the company has little to no debt compared to its total assets, capital, and equity, which is a positive sign for investors and creditors.
Additionally, the financial leverage ratio has also shown a declining trend over the quarters, indicating that the company has been relying less on debt financing to support its operations and growth. The ratio stood at 1.51 in Q4 2023, which is lower than the ratios reported in the previous quarters. A lower financial leverage ratio indicates lower financial risk and a stronger ability to weather economic downturns.
Overall, the solvency ratios of Chemed Corp. reflect a healthy balance sheet and a conservative approach to managing its capital structure. Investors and creditors can be reassured by the company's strong solvency position, which bodes well for its long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage measures a company's ability to meet its interest obligations on outstanding debt. In the case of Chemed Corp., the interest coverage ratio has shown fluctuations over the past eight quarters. In Q4 2023, the interest coverage ratio was not provided, indicating potential irregularities or a new reporting approach.
In Q3 2023, the interest coverage ratio was strong at 220.30, indicating that Chemed Corp. generated sufficient earnings before interest and taxes (EBIT) to cover its interest expenses over 200 times. However, this ratio decreased in Q2 2023 and Q1 2023 to 64.64 and 67.93, respectively, suggesting a decline in the company's ability to cover its interest payments from its operating earnings.
Comparing these figures to the same quarters in the previous year, Chemed Corp.'s interest coverage ratio was consistently higher in Q4 2022 (82.10), Q3 2022 (115.01), Q2 2022 (152.05), and Q1 2022 (181.72). This indicates that the company may have been more financially robust and had greater earnings relative to its interest expenses in the previous year compared to more recent quarters.
Overall, the fluctuating trend in Chemed Corp.'s interest coverage ratio suggests varying levels of financial risk and solvency over the analyzed period. Further analysis of the company's financial performance and debt management strategies would be necessary to provide a more comprehensive understanding of its ability to meet interest obligations in the future.