Encompass Health Corp (EHC)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,373,200 | 5,215,000 | 5,070,900 | 4,956,800 | 4,801,200 | 4,691,700 | 4,574,300 | 4,717,700 | 4,890,900 | 5,072,300 | 5,267,600 | 5,224,800 | 5,121,600 | 5,017,300 | 4,906,400 | 4,692,800 | 4,644,400 | 4,614,400 | 4,602,100 | 4,663,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 3,383,100 | 3,268,400 | 3,201,000 | 3,151,700 | 3,003,100 | 2,968,600 | 2,903,900 | 2,843,600 | 2,706,900 | 2,636,100 | 2,528,800 | 2,452,300 | 2,094,900 | 2,041,400 | 2,003,300 |
| Fixed asset turnover | — | — | — | — | — | 1.39 | 1.40 | 1.47 | 1.55 | 1.69 | 1.77 | 1.80 | 1.80 | 1.85 | 1.86 | 1.86 | 1.89 | 2.20 | 2.25 | 2.33 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,373,200K ÷ $—K
= —
The fixed asset turnover ratio measures the efficiency with which a company generates revenue from its investment in fixed assets. For Encompass Health Corp, the trend in fixed asset turnover has been declining over the observed periods.
In March 2020, the fixed asset turnover was relatively high at 2.33, indicating that the company generated $2.33 in revenue for every dollar invested in fixed assets. However, this ratio gradually decreased to 1.40 by June 2023, suggesting a decline in the company's ability to efficiently utilize its fixed assets to generate revenue.
The decreasing trend in fixed asset turnover may raise concerns about the company's asset management efficiency and could indicate potential issues such as underutilization of assets, aging infrastructure, or inefficient operations.
It is noteworthy that the data for fixed asset turnover is unavailable for the periods after June 30, 2024, which may limit a comprehensive analysis of the company's recent performance in this aspect. Further monitoring and analysis of Encompass Health Corp's fixed asset turnover will be necessary to assess any improvements or worsening in the company's asset utilization efficiency.
Peer comparison
Dec 31, 2024