Encompass Health Corp (EHC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 627,700 | 626,800 | 580,700 | 552,100 | 546,800 | 542,100 | 602,800 | 654,200 | 678,600 | 694,200 | 681,700 | 589,500 | 571,700 | 541,400 | 560,000 | 621,300 | 634,300 | 589,100 | 573,000 | 579,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 38.10% | 40.17% | 39.36% | 39.91% | 41.73% | 44.54% | 30.09% | 33.15% | 35.50% | 37.67% | 38.69% | 35.62% | 36.00% | 35.60% | 38.28% | 43.03% | 46.91% | 44.19% | 44.91% | 44.08% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $627,700K ÷ ($—K + $1,647,500K)
= 38.10%
Encompass Health Corp's return on total capital has shown some fluctuations over the past eight quarters. The return on total capital ranged from 13.81% in Q2 2022 to a high of 17.12% in Q3 2022. In the most recent quarter, Q4 2023, the return on total capital was 16.86%. Overall, the return on total capital has generally remained above 15% over the last two years, indicating the company's ability to generate profits relative to the total capital employed in its operations. However, the slight fluctuations suggest some variability in the company's efficiency in utilizing its capital resources effectively.
Peer comparison
Dec 31, 2023