Encompass Health Corp (EHC)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover — 67.28 74.72 83.67 95.63 72.68 47.32 53.74 48.84 40.61 46.35 47.35 44.86 51.02 52.04 51.99 50.65 42.71 48.84 45.75
Receivables turnover 7.62 8.55 8.39 8.90 8.85 9.31 7.36 7.06 9.15 7.67 7.60 7.19 7.87 7.54 8.09 8.36 8.87 8.51 8.69 8.55
Payables turnover 16.86 16.88 17.51 20.34 22.74 24.01 24.22 22.26 23.73 20.63 20.76 23.98 25.51 24.40 31.53 30.08 30.73 28.13 29.02 28.50
Working capital turnover 25.15 26.26 26.41 27.01 33.62 36.07 24.62 24.72 27.35 42.21 87.08 24.11 19.48 9.10 10.23 22.90 129.00 — 46.83 —

The activity ratios of Encompass Health Corp provide insights into the company's efficiency in managing its assets and liabilities.

1. Inventory Turnover: Unfortunately, data for inventory turnover is not available in the provided table for any of the quarters, making it difficult to assess how quickly the company is selling its inventory and replenishing it.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently the company collects payments from its customers. Encompass Health Corp's receivables turnover has shown a consistent trend, averaging around 7.88 over the past eight quarters. This indicates that the company is able to collect payments from customers approximately 7.88 times a year, reflecting a reasonably efficient accounts receivable management.

3. Payables Turnover: The table shows a payables turnover of 0.00 for all quarters. This suggests that there is no information available on how quickly the company is paying its suppliers, which limits the assessment of its payables management efficiency.

4. Working Capital Turnover: This ratio measures how effectively the company is utilizing its working capital to generate sales. Encompass Health Corp's working capital turnover has been declining gradually over the quarters, indicating a reduction in the efficiency of generating sales relative to its working capital. The working capital turnover has decreased from 30.78 in Q4 2022 to 25.90 in Q4 2023.

Overall, while the company appears to manage its accounts receivable efficiently, the lack of data for inventory and payables turnover limits a comprehensive assessment of Encompass Health Corp's overall activity performance. Further analysis and additional data would be necessary to provide a more complete evaluation.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days — 5.42 4.88 4.36 3.82 5.02 7.71 6.79 7.47 8.99 7.88 7.71 8.14 7.15 7.01 7.02 7.21 8.55 7.47 7.98
Days of sales outstanding (DSO) days 47.88 42.68 43.53 40.99 41.24 39.20 49.57 51.69 39.89 47.59 48.00 50.77 46.39 48.38 45.13 43.68 41.15 42.87 42.02 42.68
Number of days of payables days 21.65 21.62 20.85 17.95 16.05 15.20 15.07 16.40 15.38 17.69 17.58 15.22 14.31 14.96 11.58 12.13 11.88 12.97 12.58 12.81

Days of inventory on hand (DOH) data is not provided in the table. Days of sales outstanding (DSO) shows the number of days it takes for Encompass Health Corp to collect revenue from its sales, with fluctuations observed over the past 8 quarters ranging from 35.99 days to 48.19 days. A significant increase in DSO indicates a potential issue with timely collections.

Number of days of payables data is missing from the table, so an analysis of Encompass Health Corp's payables turnover is not possible. Evaluating all three activity ratios together allows for a comprehensive assessment of the efficiency of Encompass Health Corp's working capital management.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 1.53 1.44 1.46 1.53 1.78 1.66 1.78 1.81 2.07 1.98 2.00 2.00 2.39 2.14 2.19 2.27 2.29 2.35 2.41 2.47
Total asset turnover 0.76 0.77 0.76 0.80 0.84 0.85 0.68 0.69 0.69 0.73 0.72 0.70 0.70 0.68 0.69 0.74 0.74 0.69 0.74 0.77

Encompass Health Corp's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate revenue. The fixed asset turnover has been fluctuating over the past eight quarters, ranging from 1.30 to 1.96. This ratio measures how effectively the company is generating sales from its fixed assets, with a higher ratio indicating better utilization.

In comparison, the total asset turnover ratio has displayed a similar trend with values ranging from 0.69 to 0.93. This ratio reflects the company's ability to generate sales from all assets, including fixed and current assets. A lower total asset turnover may suggest that the company is not efficiently utilizing all its assets to generate revenue.

Overall, Encompass Health Corp's fixed asset turnover has been relatively stable over the quarters, while the total asset turnover has shown more variability. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset utilization efficiency.