Encompass Health Corp (EHC)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,647,500K
= 0.00
The debt-to-equity ratio of Encompass Health Corp has exhibited fluctuations over the past five years. The ratio decreased from 2.26 in 2019 to 2.07 in 2020, signaling a reduction in the company's reliance on debt financing relative to equity. However, in 2021, the ratio increased to 1.72 before rising further to 2.11 in 2022, indicating a higher proportion of debt in the company's capital structure during these years.
In the most recent year, as of Dec 31, 2023, the debt-to-equity ratio further decreased to 1.65. This decrease suggests that Encompass Health Corp has potentially reduced its debt levels or increased equity, indicating a stronger financial position or a more conservative approach towards leverage in the latest year.
Overall, the trend in the debt-to-equity ratio reflects varying levels of leverage used by the company in financing its operations. Monitoring this ratio over time can provide insights into Encompass Health Corp's capital structure decisions and its ability to handle financial obligations effectively.
Peer comparison
Dec 31, 2023