Encompass Health Corp (EHC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | 5.15 | 5.78 | 6.17 | 6.77 | 4.84 | 3.06 | 3.50 | 3.22 | 2.72 | 3.17 | 3.32 | 3.07 | 3.36 | 3.23 | 3.06 | |
| DOH | days | — | — | — | — | — | 70.92 | 63.20 | 59.17 | 53.92 | 75.49 | 119.47 | 104.29 | 113.53 | 133.96 | 115.11 | 109.84 | 119.06 | 108.74 | 112.86 | 119.28 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The Days of Inventory on Hand (DOH) for Encompass Health Corp provides insights into how efficiently the company manages its inventory levels. A lower DOH typically indicates that the company is selling its inventory quickly, while a higher DOH suggests that inventory may be sitting for a longer period.
Analyzing the trend in DOH for Encompass Health Corp from March 31, 2020, to June 30, 2024, we observe fluctuations in the number of days it takes for the company to sell its inventory. The DOH decreased from 119.28 days on March 31, 2020, to 53.92 days on December 31, 2022, indicating a significant improvement in inventory turnover efficiency. This reduction in DOH suggests that the company was able to streamline its inventory management processes and sell products more quickly during this period.
However, starting from March 31, 2023, there was an uptrend in DOH, reaching 70.92 days on September 30, 2023. This increase may indicate potential challenges in inventory management, such as overstocking or lower sales volumes, leading to a slower turnover of inventory.
As the DOH metric was not provided for the latter half of 2024, it is recommended to monitor the company's inventory management practices closely to ensure optimal efficiency in handling inventory levels in the future. Continuously evaluating and improving inventory turnover rates can help maintain healthy working capital levels and support overall business performance for Encompass Health Corp.
Peer comparison
Dec 31, 2024