Enhabit Inc. (EHAB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Gross profit margin | -8.63% | -49.54% | -36.27% | -14.93% |
| Operating profit margin | -4.75% | -14.32% | -13.16% | -3.14% |
| Pretax margin | -9.16% | -18.26% | -16.62% | -5.61% |
| Net profit margin | -8.03% | -16.78% | -15.50% | -6.15% |
Enhabit Inc. has shown a consistent decline in profitability ratios over the four quarters analyzed. The gross profit margin, which represents the proportion of revenue remaining after deducting the cost of goods sold, has been consistently negative, indicating that the company is not generating enough revenue to cover its direct costs.
The operating profit margin, which reflects the percentage of revenue that remains after deducting operating expenses, has also been negative throughout the period. This suggests that Enhabit Inc. is struggling to control its operating costs and generate sufficient operating income.
Similarly, the pretax margin, which measures the company's profitability before taxes, has shown a downward trend, with negative values in all quarters. This indicates that Enhabit Inc. is facing challenges in generating profits before accounting for tax expenses.
The net profit margin, representing the company's bottom line profitability after all expenses have been deducted, has also been consistently negative. This indicates that Enhabit Inc. is not generating net income relative to its revenue.
Overall, the declining profitability ratios suggest that Enhabit Inc. is facing financial difficulties and may need to focus on improving its revenue generation, controlling costs, and enhancing operational efficiency to return to profitability.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.32% | -9.96% | -9.42% | -2.13% |
| Return on assets (ROA) | -5.62% | -11.67% | -11.10% | -4.18% |
| Return on total capital | -7.23% | -21.48% | -20.05% | -4.58% |
| Return on equity (ROE) | -12.02% | -25.02% | -23.44% | -8.57% |
Enhabit Inc.'s profitability ratios have shown a downward trend over the past four quarters.
1. Operating return on assets (Operating ROA): The company's Operating ROA has ranged from -9.96% to -2.13% during the period, indicating that the company is generating negative operating profits relative to its assets.
2. Return on assets (ROA): Enhabit Inc.'s ROA has also displayed a declining trend, ranging from -11.67% to -4.18%. This suggests that the company is experiencing challenges in generating profits from its total assets.
3. Return on total capital: The Return on Total Capital ratios have also been negative, ranging from -21.48% to -4.58%. This indicates that the company's overall capital is not being utilized effectively to generate returns for its shareholders and debt holders.
4. Return on equity (ROE): Enhabit Inc.'s ROE has seen a declining trend, ranging from -25.02% to -8.57%, indicating a decrease in the profitability of the company from the perspective of its shareholders' equity.
In summary, Enhabit Inc. is facing profitability challenges as indicated by the negative values across these key profitability ratios. It is essential for the company to identify and address the underlying issues affecting profitability to improve its financial performance and create value for its stakeholders.