Net margin is calculated as Net Income divided by its Revenue. Encompass Health's Net Income for the
three
months ended in Dec. 2023 was $88 Mil. Encompass Health's Revenue for the
three
months ended in Dec. 2023 was $1,247 Mil. Therefore, Encompass Health's net margin for the quarter that ended in Dec. 2023 was 7.03%.
The historical rank and industry rank for Encompass Health's Net Margin % or its related term are showing as below:
EHC'
s Net Margin % Range Over the Past 10 Years
Min: 5.88 Med: 7.13 Max: 10.27
Current: 7.33
EHC's Net Margin % is ranked better than 72.31% of 650
companies
in the Healthcare Providers & Services industry
Industry Median: 1.66
vs EHC: 7.33
Encompass Health Net Margin % Historical Data
The historical data trend for Encompass Health's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Care Facilities subindustry, Encompass Health's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Encompass Health Net Margin % Distribution
For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Net Margin % distribution charts can be found below:
* The bar in red indicates where Encompass Health's Net Margin % falls into.
Encompass Health Net Margin % Calculation
Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.
Encompass Health's Net Margin for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Encompass Health (NYSE:EHC) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Encompass Health Net Margin % Related Terms
Thank you for viewing the detailed overview of Encompass Health's Net Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Encompass Health (Encompass Health) Business Description
Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals. Inpatient rehabilitation contributes the majority of the firm's revenue and provides specialized rehabilitative treatment through a network of inpatient hospitals. These hospitals are concentrated in the eastern half of the United States and Texas.
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