Encompass Health Corp (EHC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 352,000 | 271,000 | 412,200 | 284,200 | 358,700 |
| Total assets | US$ in thousands | 6,102,400 | 5,636,500 | 6,864,900 | 6,445,900 | 6,080,700 |
| ROA | 5.77% | 4.81% | 6.00% | 4.41% | 5.90% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $352,000K ÷ $6,102,400K
= 5.77%
Encompass Health Corp's return on assets (ROA) has fluctuated over the past five years, ranging from 4.39% in 2020 to 5.98% in 2021. In 2023, the ROA increased to 5.73% from 4.79% in 2022. This indicates that the company generated $0.0573 in net income for every dollar of assets in 2023. The upward trend in ROA from 2020 to 2021 suggests improved efficiency in asset utilization and profitability. However, the slight decrease in ROA in 2022 followed by a moderate increase in 2023 may warrant further investigation into the company's asset management strategies. Overall, Encompass Health Corp's ROA performance demonstrates reasonable profitability relative to its asset base over the past five years.
Peer comparison
Dec 31, 2023