Encompass Health Corp (EHC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,647,500K)
= 0.00
The debt-to-capital ratio of Encompass Health Corp has shown fluctuations over the past five years, ranging from 0.62 to 0.69. A decreasing trend is observed from 2022 to 2023, indicating a lower reliance on debt relative to capital in the most recent year. This suggests improved financial stability and potentially reduced financial risk. However, the ratio remains above 0.5 in each year, indicating that Encompass Health Corp relies significantly on debt to finance its operations and investments. It would be essential for stakeholders to monitor this trend to ensure the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023