Encompass Health Corp (EHC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,647,500 | 1,310,300 | 1,911,300 | 1,588,000 | 1,352,200 |
| ROE | 21.37% | 20.68% | 21.57% | 17.90% | 26.53% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $352,000K ÷ $1,647,500K
= 21.37%
Encompass Health Corp's return on equity (ROE) has shown some fluctuations over the past five years. The ROE was 21.22% in 2023, indicating that for every dollar of shareholders' equity, the company generated a return of 21.22 cents. This was a slight increase from the previous year's ROE of 20.59%.
Comparing the current ROE with the figures from 2021 and 2020, Encompass Health Corp's performance seems relatively stable, with ROE ranging between 17.83% and 21.49% during this period.
However, it is worth noting that the ROE was notably higher in 2019 at 26.43%. This may suggest that the company was more efficient in utilizing its equity to generate profits in that particular year compared to the recent years.
Overall, Encompass Health Corp's ROE performance indicates a consistent ability to generate returns for its shareholders, albeit with some variability across the years analyzed. Further investigation into the factors driving these fluctuations in ROE could provide valuable insights into the company's financial health and performance.
Peer comparison
Dec 31, 2023