Encompass Health Corp (EHC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.51% | 37.47% | 35.88% | 34.23% | 34.36% |
| Operating profit margin | 17.37% | 12.92% | 11.28% | 12.64% | 13.78% |
| Pretax margin | 10.39% | 8.89% | 10.37% | 8.05% | 10.69% |
| Net profit margin | 7.55% | 6.49% | 8.31% | 6.37% | 8.08% |
Encompass Health Corp has shown consistent and strong gross profit margins of 100% over the past five years, indicating effective control over the cost of goods sold. The operating profit margin has also exhibited steady performance, ranging from 13.95% to 15.75%, suggesting efficient management of operating expenses.
The pretax margin has shown an improving trend, increasing from 10.18% in 2020 to 12.65% in 2023, which indicates effective management of both operating costs and interest expenses. Similarly, the net profit margin has also been on an upward trajectory, improving from 6.10% in 2020 to 7.28% in 2023, suggesting that Encompass Health Corp is effectively converting its revenue into profit.
Overall, Encompass Health Corp's profitability ratios reflect a consistent and improving trend over the years, demonstrating the company's ability to generate profits efficiently and effectively manage its costs.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.27% | 9.57% | 8.15% | 8.75% | 10.07% |
| Return on assets (ROA) | 5.77% | 4.81% | 6.00% | 4.41% | 5.90% |
| Return on total capital | 38.10% | 41.73% | 35.49% | 34.17% | 46.91% |
| Return on equity (ROE) | 21.37% | 20.68% | 21.57% | 17.90% | 26.53% |
Encompass Health Corp has shown consistent profitability over the past five years, as evidenced by its profitability ratios.
- Operating return on assets (Operating ROA) has ranged from 10.05% to 11.99% during the period, indicating the company's ability to generate operating income from its assets efficiently.
- Return on assets (ROA) has shown a similar trend, fluctuating between 4.39% and 5.98%, reflecting the company's ability to generate profits relative to its total assets.
- Return on total capital has also demonstrated consistency, ranging from 13.35% to 16.86%, showing the company's ability to generate returns for both debt and equity holders.
- Return on equity (ROE) has shown a slight increase over the years, ranging from 17.83% to 26.43%, indicating the company's effectiveness in generating profits for its shareholders relative to their equity investments.
Overall, Encompass Health Corp has maintained healthy profitability ratios, demonstrating efficient asset utilization and the ability to generate returns for its investors over the past five years.