Encompass Health Corp (EHC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 455,700 | 352,000 | 271,000 | 412,200 | 284,200 |
| Total assets | US$ in thousands | 6,534,700 | 6,102,400 | 5,636,500 | 6,864,900 | 6,445,900 |
| ROA | 6.97% | 5.77% | 4.81% | 6.00% | 4.41% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $455,700K ÷ $6,534,700K
= 6.97%
Encompass Health Corp's return on assets (ROA) has shown variability over the past five years, with a noticeable improvement from 2020 to 2021. The ROA increased from 4.41% in December 2020 to 6.00% in December 2021, indicating a more efficient utilization of assets to generate profit. Subsequently, there was a slight decline in ROA to 4.81% in 2022, followed by an increase to 5.77% in 2023. The most recent data for December 31, 2024, reflects a further improvement in ROA to 6.97%.
Overall, Encompass Health Corp's ROA has exhibited positive trends in recent years, showing that the company has been able to generate more profit relative to its asset base. It is essential for the company to sustain or further improve its ROA to demonstrate continued efficiency in asset utilization and profitability. The upward trend in ROA indicates potential operational efficiency and effective management of assets, which are crucial for long-term financial success.
Peer comparison
Dec 31, 2024