Encompass Health Corp (EHC)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 841,800 | 717,200 | 921,400 | 948,600 | 755,800 |
| Total current liabilities | US$ in thousands | 656,400 | 575,900 | 748,800 | 717,300 | 721,000 |
| Current ratio | 1.28 | 1.25 | 1.23 | 1.32 | 1.05 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $841,800K ÷ $656,400K
= 1.28
The current ratio of Encompass Health Corp has shown a fluctuating trend over the past five years. As of December 31, 2023, the current ratio stands at 1.28, indicating that the company has $1.28 in current assets for every $1 in current liabilities.
Comparing this to previous years, there has been an improvement from 2022 (1.25) and 2021 (1.23), suggesting a stronger ability to meet short-term obligations. However, the current ratio is lower than the ratios reported in 2020 (1.32) and 2019 (1.05).
It is important to note that a current ratio above 1.0 generally indicates that the company has sufficient current assets to cover its current liabilities. While the current ratio has varied, Encompass Health Corp has maintained a current ratio above 1.0 in all the years presented, reflecting a reasonable liquidity position.
Overall, despite some fluctuations, the current ratio of Encompass Health Corp remains at a level that suggests the company has the ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023