Encompass Health Corp (EHC)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 810,700 | 842,400 | 740,800 | 638,300 | 539,500 | 516,000 | 529,900 | 548,100 | 559,600 | 599,500 | 609,200 | 547,600 | 563,900 | 536,800 | 536,900 | 604,300 | 612,100 | 564,300 | 567,600 | 572,300 |
| Total assets | US$ in thousands | 6,102,400 | 5,964,300 | 5,860,900 | 5,747,300 | 5,636,500 | 5,475,900 | 7,082,200 | 6,944,000 | 6,864,900 | 6,721,700 | 6,612,900 | 6,542,200 | 6,445,900 | 6,610,500 | 6,502,500 | 6,137,700 | 6,080,700 | 6,386,800 | 5,812,100 | 5,583,800 |
| Operating ROA | 13.28% | 14.12% | 12.64% | 11.11% | 9.57% | 9.42% | 7.48% | 7.89% | 8.15% | 8.92% | 9.21% | 8.37% | 8.75% | 8.12% | 8.26% | 9.85% | 10.07% | 8.84% | 9.77% | 10.25% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $810,700K ÷ $6,102,400K
= 13.28%
To analyze Encompass Health Corp's operating return on assets (operating ROA) over the past eight quarters, we observe a fluctuating trend.
The operating ROA ranged from a low of 10.25% in Q2 2022 to a high of 12.32% in Q3 2022. Overall, the trend shows some variability but generally remains within a relatively narrow band, with the latest quarter, Q4 2023, reporting an operating ROA of 11.99%. This indicates that for each dollar of assets the company has, it generated a return of approximately 11.99 cents from its operating activities at the end of the fourth quarter of 2023.
It is important to further investigate the factors driving these fluctuations in operating ROA to assess the company's operational efficiency and profitability. Additionally, comparing the operating ROA with industry benchmarks and peer companies can provide further insight into Encompass Health Corp's financial performance.
Peer comparison
Dec 31, 2023