Encompass Health Corp (EHC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.34 | 3.30 | 3.47 | 3.58 | 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 |
Based on the solvency ratios of Encompass Health Corp, we can see that the company has maintained a consistently low level of leverage and debt over the analyzed periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 throughout the period, indicating that the company's assets, capital, and equity have not been funded through debt.
Furthermore, the Financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has shown a decreasing trend from 4.25 in March 2020 to 2.34 in December 2024. This indicates that the company has been reducing its reliance on debt over time, which is a positive sign for its solvency and financial stability.
Overall, the solvency ratios suggest that Encompass Health Corp has a strong financial position and is managing its debt levels prudently to support sustainable growth and mitigate financial risk.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.38 | 5.97 | 5.66 | 5.38 | 5.16 | 5.06 | 4.74 | 3.81 | 3.52 | 3.46 | 3.59 | 3.96 | 4.28 | 4.16 | 3.96 | 3.73 | 3.57 | 3.44 | 3.71 | 4.29 |
The interest coverage ratio for Encompass Health Corp has shown a fluctuating trend over the past few years. The ratio measures the company's ability to meet its interest obligations using its operating income.
From March 31, 2020, to June 30, 2021, the interest coverage ratio decreased from 4.29 to 3.96, indicating a slight decline in the company's ability to cover its interest expenses. However, from September 30, 2021, to December 31, 2024, the interest coverage ratio steadily increased from 4.16 to 6.38, showing an improvement in the company's ability to cover its interest costs.
Overall, the interest coverage ratio for Encompass Health Corp has shown some variability but has generally trended upwards, indicating that the company's operating income has been sufficient to cover its interest expenses, with a significant improvement in recent periods. This suggests a positive financial position with a stronger ability to meet its debt obligations through its earnings.