Encompass Health Corp (EHC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,373,200 | 5,215,000 | 5,070,900 | 4,956,800 | 4,801,200 | 4,691,700 | 4,574,300 | 4,717,700 | 4,890,900 | 5,072,300 | 5,267,600 | 5,224,800 | 5,121,600 | 5,017,300 | 4,906,400 | 4,692,800 | 4,644,400 | 4,614,400 | 4,602,100 | 4,663,000 |
| Total current assets | US$ in thousands | 886,900 | 933,900 | 938,100 | 929,800 | 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 |
| Total current liabilities | US$ in thousands | 841,000 | 897,400 | 694,500 | 680,300 | 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 |
| Working capital turnover | 117.06 | 142.88 | 20.82 | 19.87 | 25.90 | 26.89 | 27.07 | 27.82 | 34.61 | 39.29 | 26.74 | 26.77 | 29.67 | 43.29 | 89.53 | 24.84 | 20.08 | 9.38 | 10.52 | 23.51 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,373,200K ÷ ($886,900K – $841,000K)
= 117.06
Encompass Health Corp's working capital turnover has shown fluctuations over the specified time period. It started at a relatively high level of 23.51 on March 31, 2020, indicating that the company was efficiently utilizing its working capital to generate revenue. However, by September 30, 2020, the turnover ratio decreased to 9.38, possibly indicating a decrease in revenue generation efficiency.
The company's working capital turnover experienced significant variations throughout 2021 and 2022, reaching both high and low levels. The ratio peaked at 89.53 on June 30, 2021, suggesting a period of efficient working capital utilization for revenue generation. Subsequently, the ratio decreased but remained relatively stable around the range of 20 to 40 until September 30, 2022.
Notably, there was a sharp increase in working capital turnover to 142.88 on September 30, 2024, followed by a substantial decrease to 117.06 by the end of December 31, 2024. This significant fluctuation might indicate potential changes in the company's operational efficiency or business activities during that period.
Overall, Encompass Health Corp's working capital turnover ratio fluctuated over the analyzed time period, indicating varying levels of efficiency in utilizing its working capital to support revenue generation. It is important for the company to closely monitor and manage this ratio to ensure optimal utilization of working capital resources.
Peer comparison
Dec 31, 2024