Encompass Health Corp (EHC)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 455,700 | 352,000 | 271,000 | 412,200 | 284,200 |
| Revenue | US$ in thousands | 5,373,200 | 4,801,200 | 4,348,600 | 5,121,600 | 4,644,400 |
| Net profit margin | 8.48% | 7.33% | 6.23% | 8.05% | 6.12% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $455,700K ÷ $5,373,200K
= 8.48%
Net profit margin is a crucial financial metric that reflects the company's profitability by measuring the percentage of net income relative to its total revenue. Analyzing the net profit margin trend of Encompass Health Corp from 2020 to 2024 indicates a fluctuating pattern.
In 2020, the net profit margin was 6.12%, showing a modest level of profitability. Subsequently, there was an improvement in 2021 as the net profit margin increased to 8.05%, indicating better efficiency in converting revenue to profit. However, in 2022, there was a slight decline to 6.23%, which could be a signal of potential challenges in cost management or revenue generation for the company.
The trend reversed in 2023 with the net profit margin increasing to 7.33%, suggesting an enhanced profitability position. Finally, in 2024, there was a notable improvement with the net profit margin reaching 8.48%, indicating a robust performance in generating profits relative to revenue.
Overall, Encompass Health Corp's net profit margin demonstrated variability over the years, with some years witnessing improvement while others experienced a decline. It is essential for the company to continue monitoring and managing its cost structure and operational efficiency to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024