Encompass Health Corp (EHC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.52% | 54.78% | 55.02% | 53.07% | 51.55% | 50.56% | 49.84% | 51.08% | 52.07% | 53.76% | 54.06% | 53.36% | 53.10% | 52.78% | 52.38% | 52.80% | 53.16% | 52.21% | 53.02% | 54.46% |
| Operating profit margin | 17.39% | 18.38% | 16.60% | 13.93% | 11.36% | 11.08% | 10.93% | 11.36% | 11.86% | 12.26% | 12.77% | 12.02% | 12.51% | 11.99% | 12.00% | 13.31% | 13.64% | 12.82% | 13.17% | 13.37% |
| Pretax margin | 10.39% | 10.49% | 9.69% | 8.29% | 7.81% | 7.82% | 8.72% | 10.21% | 10.89% | 10.71% | 10.53% | 8.92% | 8.61% | 8.02% | 8.63% | 10.03% | 10.57% | 9.93% | 9.84% | 10.06% |
| 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% |
Encompass Health Corp has consistently maintained a strong gross profit margin of 100% across all quarters, indicating efficient cost management and pricing strategies. The operating profit margin has fluctuated slightly over the quarters, with Q3 2023 showing the highest margin at 16.33%. This indicates the company's ability to generate profit from core operations.
The pretax margin has also varied over the quarters, with Q4 2023 posting a pretax margin of 12.65%, demonstrating Encompass Health Corp's ability to control pre-tax expenses and generate income before taxes. The net profit margin, a key indicator of overall profitability, has followed a similar trend, with Q3 2023 reporting the highest margin at 8.47%. This indicates the company's ability to generate profit after all expenses, including taxes, are considered.
Overall, Encompass Health Corp's profitability ratios show a stable and healthy financial performance, with consistent gross profit margins and improving operating, pretax, and net profit margins over the quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 5.77% | 5.93% | 5.36% | 4.72% | 4.81% | 4.99% | 4.63% | 5.65% | 6.00% | 6.05% | 5.81% | 4.65% | 4.41% | 4.02% | 4.39% | 5.59% | 5.90% | 5.00% | 5.34% | 5.57% |
| Return on total capital | 38.10% | 40.17% | 39.36% | 39.91% | 41.73% | 44.54% | 30.09% | 33.15% | 35.50% | 37.67% | 38.69% | 35.62% | 36.00% | 35.60% | 38.28% | 43.03% | 46.91% | 44.19% | 44.91% | 44.08% |
| Return on equity (ROE) | 21.37% | 22.67% | 21.28% | 19.60% | 20.68% | 22.45% | 16.37% | 19.88% | 21.57% | 22.07% | 21.81% | 18.40% | 17.90% | 17.48% | 19.53% | 23.78% | 26.53% | 23.94% | 24.31% | 23.65% |
Encompass Health Corp's profitability ratios indicate strong performance during Q4 2023. The operating return on assets (Operating ROA) improved to 11.99%, reflecting the company's ability to generate operating income from its assets. The Return on assets (ROA) also increased to 5.73%, suggesting that Encompass Health is efficiently utilizing its assets to generate profits.
Furthermore, the Return on total capital and Return on equity (ROE) ratios also showed positive trends, reaching 16.86% and 21.22%, respectively. This indicates that Encompass Health is effectively generating returns for both its total capital and equity shareholders. Overall, the profitability ratios suggest that Encompass Health Corp is performing well and remains profitable.