Encompass Health Corp (EHC)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.05 | 1.04 | 1.35 | 1.37 | 1.28 | 1.27 | 1.26 | 1.29 | 1.25 | 1.21 | 1.24 | 1.26 | 1.23 | 1.15 | 1.07 | 1.23 | 1.32 | 1.72 | 1.66 | 1.34 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $886,900K ÷ $841,000K
= 1.05
Encompass Health Corp's current ratio has exhibited some fluctuations over the period analyzed. The current ratio measures the company's ability to meet its short-term obligations with its current assets. From March 31, 2020, to December 31, 2022, the current ratio generally trended positively, indicating an improving ability to cover short-term liabilities.
However, there was a decrease in the current ratio from June 30, 2022, to September 30, 2022, suggesting a potential strain on liquidity during that period. Subsequently, the ratio saw a slight recovery by December 31, 2022, although still below the levels seen earlier in the year.
Throughout 2023 and the first three quarters of 2024, Encompass Health Corp's current ratio remained relatively stable, fluctuating around the 1.25 mark. The ratio increased to 1.37 by March 31, 2024, which may indicate an improved liquidity position.
Notably, there was a significant decrease in the current ratio to 1.04 by September 30, 2024, followed by a slight uptick to 1.05 by December 31, 2024. This drop suggests a potential challenge in meeting short-term obligations during the third quarter of 2024.
Overall, while Encompass Health Corp's current ratio has shown periods of improvement, investors and analysts may want to monitor the company's liquidity position closely, especially considering the fluctuations observed in 2022 and 2024.
Peer comparison
Dec 31, 2024