Encompass Health Corp (EHC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,661,000 | 4,174,400 | 4,959,100 | 4,461,100 | 4,440,800 |
| Total assets | US$ in thousands | 6,102,400 | 5,636,500 | 6,864,900 | 6,445,900 | 6,080,700 |
| Total asset turnover | 0.76 | 0.74 | 0.72 | 0.69 | 0.73 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,661,000K ÷ $6,102,400K
= 0.76
The total asset turnover ratio for Encompass Health Corp has shown a generally increasing trend over the past five years, indicative of the company's improving efficiency in generating sales from its total assets. The ratio was 0.76 in 2019, slightly increased to 0.72 in 2020, and then steadily rose to 0.75 in 2021, 0.77 in 2022, and finally reaching 0.79 in 2023.
This progression suggests that Encompass Health Corp has been more effective in utilizing its assets to generate revenue over time, reflecting improved operational efficiency and potentially better management of its asset base. A higher total asset turnover ratio is generally viewed positively as it indicates that the company is generating more sales for each dollar invested in assets.
Overall, the increasing total asset turnover ratio of Encompass Health Corp signals positive developments in the company's asset management and operational performance, potentially leading to increased profitability and shareholder value.
Peer comparison
Dec 31, 2023