Encompass Health Corp (EHC)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 352,000 | 353,800 | 313,900 | 271,200 | 271,000 | 273,200 | 327,800 | 392,400 | 412,200 | 406,600 | 384,300 | 304,500 | 284,200 | 265,800 | 285,700 | 343,400 | 358,700 | 319,200 | 310,200 | 310,800 |
| Total stockholders’ equity | US$ in thousands | 1,647,500 | 1,560,400 | 1,475,300 | 1,383,500 | 1,310,300 | 1,217,000 | 2,003,000 | 1,973,500 | 1,911,300 | 1,842,700 | 1,762,000 | 1,655,100 | 1,588,000 | 1,520,800 | 1,462,800 | 1,443,900 | 1,352,200 | 1,333,100 | 1,275,900 | 1,314,300 |
| ROE | 21.37% | 22.67% | 21.28% | 19.60% | 20.68% | 22.45% | 16.37% | 19.88% | 21.57% | 22.07% | 21.81% | 18.40% | 17.90% | 17.48% | 19.53% | 23.78% | 26.53% | 23.94% | 24.31% | 23.65% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $352,000K ÷ $1,647,500K
= 21.37%
Over the past eight quarters, Encompass Health Corp's return on equity (ROE) has shown some fluctuations. In Q3 2022, the ROE was at its highest at 22.53%, indicating that the company generated $0.2253 in profit for every $1 of shareholder equity. This was followed by a slight dip in Q4 2022 but remained relatively strong at 20.59%.
However, there was a significant drop in Q2 2022 when the ROE fell to 16.32%, indicating a decrease in profitability relative to shareholder equity. The company then rebounded in Q3 2023 with an ROE of 22.38%, suggesting improved profitability levels.
Overall, Encompass Health Corp's ROE has generally been above 20% in recent quarters, indicating that the company has been efficient in generating profits from the shareholders' investments. Investors and stakeholders may view this positively as a higher ROE typically reflects a company's ability to generate strong returns on the funds invested by shareholders.
Peer comparison
Dec 31, 2023