Encompass Health Corp (EHC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 876,200 | 831,700 | 793,900 | 765,800 | 740,900 | 739,400 | 704,000 | 657,700 | 619,200 | 618,100 | 646,600 | 639,200 | 705,200 | 710,900 | 712,900 | 684,900 | 657,800 | 627,400 | 645,500 | 710,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,792,700 | 1,959,800 | 1,839,400 | 1,741,900 | 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 |
| Return on total capital | 31.37% | 42.44% | 43.16% | 43.96% | 44.97% | 47.39% | 47.72% | 47.54% | 47.26% | 50.79% | 32.28% | 32.39% | 36.90% | 38.58% | 40.46% | 41.38% | 41.42% | 41.25% | 44.13% | 49.19% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $876,200K ÷ ($—K + $2,792,700K)
= 31.37%
Encompass Health Corp's return on total capital has exhibited some fluctuations over the past few years. The ratio was at its highest in the third quarter of 2022 at 50.79% before experiencing a decline in the following quarter. Since then, the return on total capital has shown a gradual decrease, reaching 31.37% by the end of December 2024. Overall, the trend indicates a reduction in the company's ability to generate returns relative to its total capital base. Further analysis into the company's financial performance and efficiency in capital utilization may be warranted to address the declining trend in return on total capital.
Peer comparison
Dec 31, 2024