Encompass Health Corp (EHC)
Total asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,661,900 | 4,583,100 | 4,463,400 | 4,581,400 | 4,751,100 | 4,656,300 | 4,849,900 | 4,826,000 | 4,719,900 | 4,891,800 | 4,771,800 | 4,555,200 | 4,506,400 | 4,476,400 | 4,473,700 | 4,541,100 | 4,489,100 | 4,400,700 | 4,308,800 | 4,280,800 |
| Total assets | US$ in thousands | 6,102,400 | 5,964,300 | 5,860,900 | 5,747,300 | 5,636,500 | 5,475,900 | 7,082,200 | 6,944,000 | 6,864,900 | 6,721,700 | 6,612,900 | 6,542,200 | 6,445,900 | 6,610,500 | 6,502,500 | 6,137,700 | 6,080,700 | 6,386,800 | 5,812,100 | 5,583,800 |
| 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 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,661,900K ÷ $6,102,400K
= 0.76
Total asset turnover measures how effectively a company is utilizing its assets to generate revenue. Encompass Health Corp's total asset turnover fluctuated over the past eight quarters, ranging from 0.69 to 0.93. A high total asset turnover indicates efficient asset utilization, while a low ratio suggests inefficient use of assets.
Encompass Health Corp's total asset turnover has been trending downward since Q3 2022, reaching a low of 0.69 in Q2 2023 before increasing slightly to 0.79 in Q4 2023. This indicates a potential decline in the company's ability to generate revenue relative to its asset base.
It is important for Encompass Health Corp to closely monitor and improve its total asset turnover to ensure optimal efficiency in utilizing its assets to drive revenue growth. By identifying areas of inefficiency and implementing strategies to enhance asset utilization, Encompass Health Corp can work towards improving its overall financial performance.
Peer comparison
Dec 31, 2023