Encompass Health Corp (EHC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 809,800 | 539,500 | 559,600 | 563,900 | 612,100 |
| Revenue | US$ in thousands | 4,661,000 | 4,174,400 | 4,959,100 | 4,461,100 | 4,440,800 |
| Operating profit margin | 17.37% | 12.92% | 11.28% | 12.64% | 13.78% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $809,800K ÷ $4,661,000K
= 17.37%
The operating profit margin of Encompass Health Corp has shown some fluctuations over the past five years. In 2023, the operating profit margin increased to 15.24% from 14.49% in 2022. This is a positive indicator as it suggests that the company was able to generate more operating profit for every dollar of revenue in 2023 compared to the previous year. The 2023 margin of 15.24% is slightly below the 15.75% operating profit margin in 2021, indicating a slight dip in profitability. However, it is noteworthy that the company's operating profit margin has remained relatively consistent over the five-year period, ranging from 13.95% to 15.75%.
Overall, Encompass Health Corp's operating profit margin performance reflects a generally stable and healthy profitability trend, with some minor fluctuations in recent years. Maintaining or improving this margin in the future will be a key focus for sustaining the profitability of the company.
Peer comparison
Dec 31, 2023