Encompass Health Corp (EHC)

Net profit margin

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Net income (ttm) US$ in thousands 352,000 353,800 313,900 271,200 271,000 273,200 327,800 392,400 412,200 406,600 384,300 304,500 284,200 265,800 285,700 343,400 358,700 319,200 310,200 310,800
Revenue (ttm) US$ in thousands 4,661,900 4,583,100 4,463,400 4,581,400 4,751,100 4,656,300 4,849,900 4,826,000 4,719,900 4,891,800 4,771,800 4,555,200 4,506,400 4,476,400 4,473,700 4,541,100 4,489,100 4,400,700 4,308,800 4,280,800
Net profit margin 7.55% 7.72% 7.03% 5.92% 5.70% 5.87% 6.76% 8.13% 8.73% 8.31% 8.05% 6.68% 6.31% 5.94% 6.39% 7.56% 7.99% 7.25% 7.20% 7.26%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $352,000K ÷ $4,661,900K
= 7.55%

The net profit margin of Encompass Health Corp has shown some fluctuations over the past eight quarters. In Q4 2023, the net profit margin stood at 7.28%, marking a slight decrease from the previous quarter's 8.47%. However, this figure was higher compared to Q4 2022, indicating a positive trend year-over-year.

Overall, the company's net profit margin has generally been within a range of 5.37% to 8.47% over the past two years, with some variability between quarters. This suggests that Encompass Health Corp has been able to maintain a relatively stable level of profitability relative to its revenue during this period.

It is important for stakeholders to continue monitoring the net profit margin, as it provides insight into the company's ability to convert revenue into profit. Any significant shifts in this ratio could indicate changes in the company's operational efficiency, cost structure, or overall financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Net profit margin
Encompass Health Corp
EHC
7.55%
Mednax Inc
MD
-3.09%
Select Medical Holdings
SEM
3.77%