Encompass Health Corp (EHC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,373,200 | 4,801,200 | 4,348,600 | 5,121,600 | 4,644,400 |
| Property, plant and equipment | US$ in thousands | — | — | 3,151,700 | 2,843,600 | 2,452,300 |
| Fixed asset turnover | — | — | 1.38 | 1.80 | 1.89 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,373,200K ÷ $—K
= —
The fixed asset turnover ratio for Encompass Health Corp has shown a downward trend over the past few years. In 2020, the ratio was 1.89, indicating that the company generated $1.89 in revenue for every dollar invested in fixed assets. However, this ratio decreased to 1.80 in 2021 and further declined to 1.38 in 2022. The absence of data for 2023 and 2024 suggests potential challenges or changes in reporting.
This declining trend in fixed asset turnover may indicate inefficiencies in utilizing fixed assets to generate revenue or a slowdown in operational productivity. It is important for the company to analyze the reasons behind this trend and take steps to improve the efficiency of its asset utilization to enhance profitability and operational performance in the future.
Peer comparison
Dec 31, 2024