Encompass Health Corp (EHC)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,102,400 | 5,964,300 | 5,860,900 | 5,747,300 | 5,636,500 | 5,475,900 | 7,082,200 | 6,944,000 | 6,864,900 | 6,721,700 | 6,612,900 | 6,542,200 | 6,445,900 | 6,610,500 | 6,502,500 | 6,137,700 | 6,080,700 | 6,386,800 | 5,812,100 | 5,583,800 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,352,200 | 1,333,100 | 1,275,900 | 1,314,300 |
| Financial leverage ratio | 3.70 | 3.82 | 3.97 | 4.15 | 4.30 | 4.50 | 3.54 | 3.52 | 3.59 | 3.65 | 3.75 | 3.95 | 4.06 | 4.35 | 4.45 | 4.25 | 4.50 | 4.79 | 4.56 | 4.25 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,102,400K ÷ $1,647,500K
= 3.70
Encompass Health Corp's financial leverage ratio has exhibited a fluctuating trend over the past eight quarters, ranging from 3.52 to 4.50. The ratio peaked at 4.50 in Q3 2022 and has since displayed a declining pattern, reaching its lowest point of 3.54 in Q2 2022. However, the ratio has shown an upward trajectory in the most recent quarters, with a notable increase in Q4 2023 to 3.70.
This indicates that the company has been utilizing more debt to finance its operations and investments compared to its equity over the period under review. While the recent decrease in the financial leverage ratio suggests potentially reduced financial risk, a higher ratio typically indicates higher financial leverage and, consequently, greater risk. It is essential for investors and stakeholders to monitor Encompass Health Corp's financial leverage ratio closely to assess the company's risk profile and financial stability.
Peer comparison
Dec 31, 2023