Encompass Health Corp (EHC)
Working capital 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 current assets | US$ in thousands | 841,800 | 813,700 | 824,000 | 761,700 | 717,200 | 733,800 | 1,032,400 | 949,700 | 921,400 | 909,800 | 859,300 | 1,001,100 | 948,600 | 1,174,400 | 1,101,700 | 784,500 | 755,800 | 1,077,400 | 844,900 | 682,700 |
| Total current liabilities | US$ in thousands | 656,400 | 639,200 | 655,000 | 592,100 | 575,900 | 604,700 | 835,400 | 754,500 | 748,800 | 793,900 | 804,500 | 812,200 | 717,300 | 682,500 | 664,400 | 586,200 | 721,000 | 1,108,600 | 752,900 | 768,200 |
| 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 | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,661,900K ÷ ($841,800K – $656,400K)
= 25.15
The working capital turnover of Encompass Health Corp has shown a declining trend over the past eight quarters. In Q4 2023, the working capital turnover was 25.90, compared to 39.29 in Q3 2022. This indicates that the company's ability to efficiently utilize its working capital to generate revenue has decreased. A lower working capital turnover may suggest inefficiencies in managing inventory, receivables, or payables, which can impact the company's overall financial performance and liquidity. Encompass Health Corp may need to review its working capital management practices to improve efficiency and optimize its financial resources.
Peer comparison
Dec 31, 2023