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

Company name
Symbol
ROA
Encompass Health Corp
EHC
5.77%
Mednax Inc
MD
-2.72%
Select Medical Holdings
SEM
3.17%