Encompass Health Corp (EHC)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,574,100 | 1,168,900 | 1,919,800 | 2,788,800 | 3,637,700 | 4,478,100 | 4,363,500 | 4,506,100 | 4,677,000 | 4,858,100 | 5,051,300 | 5,011,300 | 4,912,300 | 4,810,500 | 4,700,300 | 4,486,100 | 4,443,900 | 4,422,400 | 4,419,700 | 4,489,500 |
| 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 |
| Gross profit margin | 29.30% | 22.41% | 37.86% | 56.26% | 75.77% | 95.45% | 95.39% | 95.51% | 95.63% | 95.78% | 95.89% | 95.91% | 95.91% | 95.88% | 95.80% | 95.60% | 95.68% | 95.84% | 96.04% | 96.28% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,574,100K ÷ $5,373,200K
= 29.30%
The gross profit margin of Encompass Health Corp has been quite stable and consistently high over the past few years, ranging from 96.28% in March 2020 to 95.91% in December 2021. This indicates that the company has been effectively managing its production costs and pricing strategies to generate a high level of profitability from its core business operations.
However, there was a significant drop in the gross profit margin to 75.77% in December 2023, followed by a further decline to 56.26% in March 2024. This substantial decrease may suggest potential challenges in cost control or pricing pressures that impacted the company's ability to maintain its historical profit margins.
Subsequently, there was a sharp decline to 22.41% in September 2024, which raises concerns about the company's ability to efficiently manage its production costs relative to its revenue. This trend continued with a gross profit margin of 29.30% in December 2024, indicating ongoing challenges in maintaining profitability.
It is essential for Encompass Health Corp to closely monitor and address the factors contributing to the declining gross profit margins to ensure sustainable financial performance and long-term profitability. Further analysis of the underlying causes of these fluctuations is recommended to identify and implement effective strategies for improving the company's gross profit margin in the future.
Peer comparison
Dec 31, 2024