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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Chemed Corporation · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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The Company’s primary market risk exposure relates to interest rate risk exposure through its variable interest line of credit. At June 30, 2026, the Company has $140.0 million of variable rate debt outstanding. For each $10 million borrowed under the credit facility, an increase or decrease of 100 basis points (1%), increases or decreases the Company’s annual interest expense by $100,000.
The Company continually evaluates this interest rate exposure and periodically weighs the cost versus the benefit of fixing the variable interest rates through a variety of hedging techniques.