Encompass Health Corp (EHC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 749,600 | 607,200 | 450,800 | 657,200 | 472,600 |
| Revenue | US$ in thousands | 5,373,200 | 4,801,200 | 4,348,600 | 5,121,600 | 4,644,400 |
| Pretax margin | 13.95% | 12.65% | 10.37% | 12.83% | 10.18% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $749,600K ÷ $5,373,200K
= 13.95%
The pretax margin of Encompass Health Corp has shown a generally positive trend over the years, reflecting the company's ability to effectively manage its operating expenses relative to its revenue.
In 2020, the pretax margin was 10.18%, indicating that for every dollar of revenue generated, the company retained $0.1018 before accounting for taxes and other expenses. The margin improved to 12.83% in 2021, demonstrating enhanced efficiency in cost control and operations.
Although there was a slight decline in 2022 with a pretax margin of 10.37%, the company rebounded in 2023 and achieved a pretax margin of 12.65%. This upward trajectory continued into 2024, reaching a pretax margin of 13.95%, showcasing the company's strong financial performance and profitability.
Overall, Encompass Health Corp's pretax margin has exhibited resilience and growth, reflecting effective operational management and sound financial health.
Peer comparison
Dec 31, 2024