Encompass Health Corp (EHC)

Days of inventory on hand (DOH) is a key metric used to assess the efficiency of Encompass Health Corp's inventory management. A lower DOH value indicates that the company is selling its inventory at a faster rate, which is generally favorable.

From the provided data, we observe a decreasing trend in Encompass Health Corp's DOH over the years. In December 2020, the DOH was relatively high at 119.06 days, which suggests a slower turnover of inventory. However, there has been a consistent improvement in inventory management efficiency as indicated by the decreasing DOH figures in subsequent years.

By December 31, 2024, the company reported a DOH of "— days," which may indicate a possible change in reporting or inventory management practices. It is important to further investigate this anomaly to determine the underlying reasons and implications.

Overall, the decreasing trend in Encompass Health Corp's DOH is a positive indicator of improved inventory turnover efficiency, potentially leading to lower holding costs, reduced risk of inventory obsolescence, and better utilization of working capital.

Peer comparison

Dec 31, 2024