Chemed(Che) Financials: Total Asset Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - total asset turnover
This chart shows the historical trend of total asset turnover for CHE compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Total Asset Turnover
Definition: Total asset turnover measures how efficiently the company generates sales from its entire asset base. A high turnover means the company gets a lot of sales out of relatively fewer assets — very efficient. A low turnover may suggest underused assets or bloated balance sheets.
Interpretation:
• In '2021', CHE's total asset turnover was 1.59, reflecting overall efficiency in utilizing assets. Industry average for Medical/Nursing Services in '2021' stood at 0.96.
• In '2022', CHE's total asset turnover was 1.53, reflecting overall efficiency in utilizing assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at 1.05. Industry average increased by 0.09 compared to previous year.
• In '2023', CHE's total asset turnover was 1.46, reflecting overall efficiency in utilizing assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2023' stood at 1.19. Industry average increased by 0.14 compared to previous year.
• In '2024', CHE's total asset turnover was 1.46, reflecting overall efficiency in utilizing assets. The increase since '2023' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2024' stood at 1.43. Industry average increased by 0.24 compared to previous year.
Overall, CHE's total asset turnover has consistently declined during the past 4 years.
Formula: Total Asset Turnover = Net Sales / Total Assets
Good Range: Ranges from 0.5 to 2 depending on business type.