Encompass Health Corp (EHC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 29.30% | 22.41% | 37.86% | 56.26% | 75.77% | 95.45% | 95.39% | 95.51% | 95.63% | 95.78% | 95.89% | 95.91% | 95.91% | 95.88% | 95.80% | 95.60% | 95.68% | 95.84% | 96.04% | 96.28% |
| Operating profit margin | 16.09% | 15.76% | 14.35% | 12.72% | 12.61% | 12.88% | 14.25% | 14.63% | 14.08% | 13.08% | 13.30% | 13.80% | 13.76% | 14.64% | 13.42% | 11.40% | 11.91% | 11.33% | 11.53% | 13.08% |
| Pretax margin | 13.95% | 13.67% | 13.30% | 12.90% | 12.65% | 12.65% | 12.15% | 10.59% | 10.11% | 9.68% | 10.34% | 12.08% | 12.83% | 13.15% | 12.75% | 10.74% | 10.18% | 9.54% | 10.15% | 11.62% |
| Net profit margin | 8.48% | 8.10% | 7.88% | 7.60% | 7.33% | 7.54% | 7.74% | 7.08% | 6.81% | 6.61% | 6.64% | 7.49% | 8.03% | 8.08% | 7.80% | 6.47% | 6.10% | 5.74% | 6.19% | 7.35% |
Encompass Health Corp's profitability ratios show a gradual decline in gross profit margin from 96.28% as of March 31, 2020, to 29.30% as of December 31, 2024. This downward trend could indicate increasing costs relative to revenues over the period.
The operating profit margin fluctuated during the period, with a decrease from 13.08% as of March 31, 2020, to 16.09% as of December 31, 2024. This fluctuation suggests changes in operating efficiency and effectiveness in managing expenses.
The pretax margin, displaying volatility, ranged from 9.54% on September 30, 2020, to 13.67% on September 30, 2024. This trend indicates varying levels of profitability before accounting for taxes over time.
Net profit margin also exhibited variability, with a range from 5.74% on September 30, 2020, to 8.48% on December 31, 2024. This metric indicates the company's ability to generate profit after accounting for all expenses, including taxes.
Overall, Encompass Health Corp's profitability ratios highlight fluctuations in profitability over the period, suggesting changes in cost structures, operational efficiency, and overall profitability. Further analysis of the underlying factors driving these changes would provide deeper insights into the company's financial performance.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.23% | 12.73% | 11.39% | 10.12% | 9.92% | 10.13% | 11.12% | 12.01% | 12.22% | 12.12% | 9.89% | 10.38% | 10.27% | 10.93% | 9.96% | 8.18% | 8.58% | 7.91% | 8.16% | 9.94% |
| Return on assets (ROA) | 6.97% | 6.54% | 6.25% | 6.05% | 5.77% | 5.93% | 6.04% | 5.81% | 5.91% | 6.13% | 4.94% | 5.64% | 5.99% | 6.03% | 5.79% | 4.64% | 4.40% | 4.01% | 4.38% | 5.58% |
| Return on total capital | 31.37% | 42.44% | 43.16% | 43.96% | 44.97% | 47.39% | 47.72% | 47.54% | 47.26% | 50.79% | 32.28% | 32.39% | 36.90% | 38.58% | 40.46% | 41.38% | 41.42% | 41.25% | 44.13% | 49.19% |
| Return on equity (ROE) | 16.32% | 21.55% | 21.72% | 21.63% | 21.37% | 22.67% | 24.00% | 24.13% | 25.44% | 27.57% | 17.47% | 19.84% | 21.51% | 21.99% | 21.72% | 18.33% | 17.84% | 17.43% | 19.47% | 23.72% |
Encompass Health Corp's profitability ratios indicate a consistent performance over the period analyzed.
1. Operating return on assets (Operating ROA) demonstrates the company's ability to generate operating income relative to its total assets. The ratio ranged between 7.91% and 13.23%, showing a positive trend with a peak in September 2024.
2. Return on assets (ROA) measures the company's overall profitability by evaluating its ability to generate profits from its assets. Encompass Health Corp's ROA ranged from 4.01% to 6.97%, showcasing a stable performance with fluctuations but generally showing improvement over time.
3. Return on total capital reflects the company's profitability related to its total capital, including debt and equity. The ratio varied from 31.37% to 50.79%, with fluctuations observed throughout the period. The trend shows a decline in the ratio by the end of the period.
4. Return on equity (ROE) assesses the company's profitability in relation to its shareholders' equity. Encompass Health Corp's ROE fluctuated between 16.32% and 27.57%, indicating fluctuations but maintaining a relatively stable performance with a gradual decrease over time.
Overall, Encompass Health Corp's profitability ratios demonstrate a solid financial performance, with some fluctuations observed, indicating areas of strength and potential improvement for the company.