Encompass Health Corp (EHC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 627,700 | 546,800 | 678,400 | 542,600 | 634,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,647,500 | 1,310,300 | 1,911,300 | 1,588,000 | 1,352,200 |
| Return on total capital | 38.10% | 41.73% | 35.49% | 34.17% | 46.91% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $627,700K ÷ ($—K + $1,647,500K)
= 38.10%
Encompass Health Corp's return on total capital has shown a generally positive trend over the past five years, with fluctuations from 13.35% in 2020 to a peak of 16.86% in 2023. The company's ability to generate returns on its total invested capital indicates efficient utilization of both debt and equity to generate profits. The increasing trend in return on total capital signifies a higher level of efficiency and effectiveness in utilizing its capital resources to generate profits for its investors. Overall, Encompass Health Corp has demonstrated a consistent ability to generate favorable returns on its total capital over the past five years, reflecting positively on its financial performance.
Peer comparison
Dec 31, 2023