Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Chemed's annualized net income for the quarter that ended in Dec. 2023 was $360 Mil. Chemed's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $387 Mil. Therefore, Chemed's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 93.07%.
The historical rank and industry rank for Chemed's Return-on-Tangible-Equity or its related term are showing as below:
CHE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 99.04 Med: 919.76 Max: 3725.88
Current: 99.54
During the past 13 years, Chemed's highest Return-on-Tangible-Equity was 3,725.88%. The lowest was 99.04%. And the median was 919.76%.
CHE's Return-on-Tangible-Equity is ranked better than 88.06% of 536
companies
in the Healthcare Providers & Services industry
Industry Median: 10.2
vs CHE: 99.54
Chemed Return-on-Tangible-Equity Historical Data
The historical data trend for Chemed's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Chemed's Return-on-Tangible-Equity
For the Medical Care Facilities subindustry, Chemed's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chemed's Return-on-Tangible-Equity Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Chemed's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chemed's Return-on-Tangible-Equity falls into.
Chemed Return-on-Tangible-Equity Calculation
Chemed's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Chemed Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Chemed's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Chemed Corp operates subsidiaries in two main segments: VITAS and Roto-Rooter. The VITAS segment generates the majority of the firm's revenue. It provides hospice and palliative-care services to patients with terminal illnesses through a network of physicians, registered nurses, home health aides, social workers, and volunteers. The vast majority of the segment's revenue is received from the Medicare and Medicaid reimbursement programs. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration, and related services to residential and commercial customers. Chemed generates the majority of its revenue from business in the United States.
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