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Chemed (Chemed) ROE % : 22.70% (As of Mar. 2024)


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What is Chemed ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chemed's annualized net income for the quarter that ended in Mar. 2024 was $260 Mil. Chemed's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $1,146 Mil. Therefore, Chemed's annualized ROE % for the quarter that ended in Mar. 2024 was 22.70%.

The historical rank and industry rank for Chemed's ROE % or its related term are showing as below:

CHE' s ROE % Range Over the Past 10 Years
Min: 18.45   Med: 30.98   Max: 39.25
Current: 27.55

During the past 13 years, Chemed's highest ROE % was 39.25%. The lowest was 18.45%. And the median was 30.98%.

CHE's ROE % is ranked better than
91.52% of 613 companies
in the Healthcare Providers & Services industry
Industry Median: 4.42 vs CHE: 27.55

Chemed ROE % Historical Data

The historical data trend for Chemed's ROE % 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.

* Premium members only.

Chemed ROE % Chart

Chemed Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.37 39.25 35.23 35.11 28.59

Chemed Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.79 23.31 30.42 33.87 22.70

Competitive Comparison of Chemed's ROE %

For the Medical Care Facilities subindustry, Chemed's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Chemed's ROE % distribution charts can be found below:

* The bar in red indicates where Chemed's ROE % falls into.



Chemed ROE % Calculation

Chemed's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=272.509/( (798.715+1107.876)/ 2 )
=272.509/953.2955
=28.59 %

Chemed's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=260.068/( (1107.876+1183.495)/ 2 )
=260.068/1145.6855
=22.70 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Chemed  (NYSE:CHE) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=260.068/1145.6855
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(260.068 / 2356.932)*(2356.932 / 1697.864)*(1697.864 / 1145.6855)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.03 %*1.3882*1.482
=ROA %*Equity Multiplier
=15.31 %*1.482
=22.70 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=260.068/1145.6855
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (260.068 / 337.94) * (337.94 / 289.332) * (289.332 / 2356.932) * (2356.932 / 1697.864) * (1697.864 / 1145.6855)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7696 * 1.168 * 12.28 % * 1.3882 * 1.482
=22.70 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Chemed ROE % Related Terms

Thank you for viewing the detailed overview of Chemed's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Chemed (Chemed) Business Description

Traded in Other Exchanges
N/A
Address
255 East Fifth Street, Suite 2600, Cincinnati, OH, USA, 45202-4726
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.
Executives
Kevin J Mcnamara director, officer: president & ceo 2500 CHEMED CENTER, 255 EAST FIFTH ST, CINCINNATI OH 45202
Spencer S Lee officer: vice president 2500 CHEMED CENTER, 255 EAST FIFTH ST, CINCINNATI OH 45202
David Patrick Williams officer: Vice President & CFO
Nicholas Michael Westfall officer: Executive Vice President 8035 PEREGRINE LANE, CINCINNATI OH 45243
Patrick P Grace director 1100 PARK AVE, APT 15C, NEW YORK NY 10128
Eileen P Mccarthy director 3515 78TH STREET, #2, JACKSON HEIGHTS NY 11372
Michael D Witzeman officer: vice president and controller 255 E 5TH STREET, SUITE 2600, CINCINNATI OH 45202
Mount John Meredith Jr. director 2906 MABRY ROAD NE, ATLANTA GA 30319
Donald E Saunders director 306 MIANI TRAIL, OXFORD OH 45056
Christopher J Heaney director 101 S. FORT LAUDERDALE BEACH BLVD., APARTMENT 1602, FORT LAUDERDALE FL 33316
Ron Delyons director 2692 MADISON ROAD, SUITE N1-313, CINCINNATI OH 45208
Naomi C Dallob officer: VP and Chief Legal Officer 255 EAST FIFTH STREET, SUITE 2600, CINCINNATI OH 45202
Thomas C Hutton director, officer: vice president ONE ROCKEFELLER PLAZA, STE 1510, NEW YORK NY 10020
Walsh George J Iii director ONE CHASE MANHATTAN PLAZA, NEW YORK NY 10005
Andrea R Lindell director