Encompass Health Corp (EHC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.70 | 4.30 | 3.59 | 4.06 | 4.50 |
The solvency ratios of Encompass Health Corp show a gradual improvement in the company's ability to meet its long-term financial obligations over the past five years.
The debt-to-assets ratio has decreased from 0.50 in 2019 to 0.44 in 2023, indicating that Encompass Health Corp has reduced its reliance on debt to finance its assets. This trend suggests an efficient use of assets to generate revenue while maintaining a conservative level of debt.
Similarly, the debt-to-capital ratio has declined from 0.69 in 2019 to 0.62 in 2023, showing that the company has been successful in reducing its debt component in its overall capital structure. This indicates a healthier mix of debt and equity financing, which may reduce financial risk.
The debt-to-equity ratio has also improved from 2.26 in 2019 to 1.65 in 2023, signaling a lower level of debt relative to shareholders' equity. This indicates that Encompass Health Corp has strengthened its financial position by reducing its debt burden in comparison to its equity base.
The financial leverage ratio, which measures the extent of total assets supported by equity capital, also displays a positive trend, decreasing from 4.50 in 2019 to 3.70 in 2023. This reduction reflects a lower degree of financial leverage and a more stable capital structure for Encompass Health Corp.
Overall, the improving solvency ratios of Encompass Health Corp suggest that the company has been proactive in managing its debt levels and strengthening its financial position, which may enhance its long-term sustainability and ability to weather economic challenges.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.37 | 3.11 | 4.13 | 2.95 | 3.97 |
Based on the data provided, the interest coverage ratio for Encompass Health Corp is not available for the years 2019 to 2023. This could be attributed to the unavailability of specific financial figures necessary to calculate the ratio, such as operating income and interest expenses. Without this information, it is not possible to assess the company's ability to cover its interest expenses using its operating earnings. It is essential for investors and analysts to closely monitor the financial statements of Encompass Health Corp to ensure a comprehensive evaluation of its financial health in the future.