Encompass Health Corp (EHC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,067,000 | 1,647,500 | 1,310,300 | 1,911,300 | 1,588,000 |
| ROE | 22.05% | 21.37% | 20.68% | 21.57% | 17.90% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $455,700K ÷ $2,067,000K
= 22.05%
Encompass Health Corp has demonstrated a consistent improvement in its return on equity (ROE) over the last five years. The ROE increased from 17.90% as of December 31, 2020, to 22.05% as of December 31, 2024. This upward trend indicates that the company is effectively utilizing its shareholders' equity to generate profits. A rising ROE is generally viewed positively by investors as it suggests efficient management of resources and potential for sustainable growth. Encompass Health Corp's ability to enhance its ROE reflects a strong financial performance and sound strategic decision-making, positioning the company well for continued success in the future.
Peer comparison
Dec 31, 2024