Encompass Health Corp (EHC)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,799,100 | 4,046,100 | 3,151,100 | 2,168,000 | 1,163,500 | 213,600 | 210,800 | 211,600 | 213,900 | 214,200 | 216,300 | 213,500 | 209,300 | 206,800 | 206,100 | 206,700 | 200,500 | 192,000 | 182,400 | 173,500 |
| Inventory | US$ in thousands | — | — | — | — | 0 | 41,500 | 36,500 | 34,300 | 31,600 | 44,300 | 70,800 | 61,000 | 65,100 | 75,900 | 65,000 | 62,200 | 65,400 | 57,200 | 56,400 | 56,700 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,799,100K ÷ $—K
= —
Encompass Health Corp's inventory turnover has shown fluctuations over the years based on the provided data. Inventory turnover is a measure of how efficiently a company manages its inventory levels by comparing the cost of goods sold to average inventory for a specific period.
Encompass Health Corp's inventory turnover was relatively stable in the range of 3 to 3.5 from March 2020 to March 2022, suggesting a consistent level of inventory management efficiency during this period. However, there was a notable increase in the inventory turnover ratio up to 4.84 on September 30, 2022, followed by a significant surge to 6.77 by December 31, 2022. These sudden spikes could indicate either a more aggressive inventory management strategy or a decline in inventory levels compared to the cost of goods sold.
From March 2023 to December 2023, the inventory turnover ratio decreased gradually but remained relatively high, ranging between 5.15 to 6.17. This indicates that Encompass Health Corp was still efficiently managing its inventory despite the slight decrease in turnover. However, the data shows that the inventory turnover ratio data was not available for the period from December 31, 2023, to September 30, 2024.
In general, an increasing inventory turnover ratio suggests that Encompass Health Corp is selling goods more quickly or maintaining lower inventory levels relative to sales, which can be a positive indication of operational efficiency. However, it is essential to keep a close watch on inventory turnover trends to ensure that inventory levels are aligned with sales demand and not overly depleted, which could lead to stockouts or decreased customer satisfaction.
Peer comparison
Dec 31, 2024
Dec 31, 2024