Encompass Health Corp (EHC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 484,200 | 371,100 | 514,100 | 358,900 | 474,600 |
| Revenue | US$ in thousands | 4,661,000 | 4,174,400 | 4,959,100 | 4,461,100 | 4,440,800 |
| Pretax margin | 10.39% | 8.89% | 10.37% | 8.05% | 10.69% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $484,200K ÷ $4,661,000K
= 10.39%
The pretax margin of Encompass Health Corp has shown a fluctuating trend over the past five years. In 2023, the pretax margin increased to 12.65% from 10.37% in 2022, indicating an improvement in the company's ability to generate profit before taxes. This represents a positive performance compared to the previous year.
Looking at the historical data, the pretax margin was also relatively strong in 2021 at 12.83% and in 2019 at 12.21%. However, there was a slight dip in 2020 to 10.18%. Overall, the company has managed to maintain pretax margins above 10% in the past five years, demonstrating a consistent profitability performance.
The upward trend in the pretax margin for 2023 reflects potentially effective cost management and revenue generation strategies implemented by Encompass Health Corp during the year. This metric is crucial in evaluating the company's operational efficiency and profitability before accounting for taxes, indicating a positive financial outlook for the organization.
Peer comparison
Dec 31, 2023