Encompass Health Corp (EHC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,102,400 | 5,636,500 | 6,864,900 | 6,445,900 | 6,080,700 |
| Total stockholders’ equity | US$ in thousands | 1,647,500 | 1,310,300 | 1,911,300 | 1,588,000 | 1,352,200 |
| Financial leverage ratio | 3.70 | 4.30 | 3.59 | 4.06 | 4.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,102,400K ÷ $1,647,500K
= 3.70
The financial leverage ratio of Encompass Health Corp has shown fluctuations over the past five years, ranging from 3.59 to 4.50. In 2023, the ratio decreased to 3.70 from 4.30 in 2022, indicating a reduction in the company's reliance on debt to finance its operations. This downward trend suggests a potential improvement in Encompass Health Corp's financial stability and risk exposure. However, it is essential to further investigate the factors influencing these changes to assess the long-term implications for the company's financial health and strategic decision-making.
Peer comparison
Dec 31, 2023