Encompass Health Corp (EHC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,373,200 | 4,801,200 | 4,348,600 | 5,121,600 | 4,644,400 |
| Total current assets | US$ in thousands | 886,900 | 841,800 | 717,200 | 921,400 | 948,600 |
| Total current liabilities | US$ in thousands | 841,000 | 656,400 | 575,900 | 748,800 | 717,300 |
| Working capital turnover | 117.06 | 25.90 | 30.78 | 29.67 | 20.08 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,373,200K ÷ ($886,900K – $841,000K)
= 117.06
Encompass Health Corp's working capital turnover has shown a strong trend of improvement over the past five years. From 20.08 in 2020, the ratio increased to 29.67 in 2021, further rising to 30.78 in 2022. Although there was a slight decrease to 25.90 in 2023, the ratio surged significantly to 117.06 in 2024. This notable spike in 2024 indicates a substantial increase in the efficiency of the company in utilizing its working capital to generate revenue. Overall, Encompass Health Corp's working capital turnover is trending positively, reflecting effective management of working capital resources to drive business operations and revenue generation.
Peer comparison
Dec 31, 2024