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Encompass Health Operating Margin %

: 12.18% (As of Jun. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Encompass Health's Operating Income for the three months ended in Jun. 2022 was $162 Mil. Encompass Health's Revenue for the three months ended in Jun. 2022 was $1,331 Mil. Therefore, Encompass Health's Operating Margin % for the quarter that ended in Jun. 2022 was 12.18%.

Warning Sign:

Encompass Health Corp operating margin has been in a 5-year decline. The average rate of decline per year is -3.4%.

The historical rank and industry rank for Encompass Health's Operating Margin % or its related term are showing as below:

EHC' s Operating Margin % Range Over the Past 10 Years
Min: 13.78   Med: 17.19   Max: 20.42
Current: 13.78


EHC's Operating Margin % is ranked better than
77.71% of 655 companies
in the Healthcare Providers & Services industry
Industry Median: 4.05 vs EHC: 13.78

Encompass Health's 5-Year Average Operating Margin % Growth Rate was -3.40% per year.

Encompass Health's Operating Income for the three months ended in Jun. 2022 was $162 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $726 Mil.


Encompass Health Operating Margin % Historical Data

The historical data trend for Encompass Health's Operating 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.

* Premium members only.

Encompass Health Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.59 15.94 15.04 13.95 15.75

Encompass Health Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.01 15.53 13.67 13.79 12.18

Competitive Comparison

For the Medical Care Facilities subindustry, Encompass Health's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Encompass Health's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Encompass Health's Operating Margin % falls into.



Encompass Health Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Encompass Health's Operating Margin % for the fiscal year that ended in Dec. 2021 is calculated as

Operating Margin %=Operating Income (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=806.5 / 5121.6
=15.75 %

Encompass Health's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=162.1 / 1330.5
=12.18 %

* 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) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Encompass Health Operating Margin % Related Terms

Thank you for viewing the detailed overview of Encompass Health's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Encompass Health Business Description

Encompass Health logo
Traded in Other Exchanges
Address
9001 Liberty Parkway, Birmingham, AL, USA, 35242
Encompass Health Corp provides post-acute healthcare services in the United States through a network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. It operates in two segments: inpatient rehabilitation and home health and hospice. The Inpatient rehabilitation segment 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. The Home health and hospital segment provides skilled home health services through agencies concentrated in the southeastern United States and Texas, which include nursing, physical, occupational, and speech therapy, social work, and hospice services.
Executives
O'connor Kevin J. director 13995 PASTEUR BOULEVARD PALM BEACH GARDENS FL 33418
Reidy Christopher R director ONE ADP BLVD ROSELAND NJ 07068
Carmichael Greg D director
Williams Terrance director 7184 BIDDICK NEW ALBANY OH 43054
Maryland Patricia Anne director 7342 HORIZON DRIVE WEST PALM BEACH FL 33412
Schlichting Nancy M director 200 WILMOT ROAD DEERFIELD IL 60015
Jacobsmeyer Barbara Ann officer: EVP, Operations 2122 ACTON PARK WAY BIRMINGHAM AL 35243
Darby John Patrick officer: EVP, Gen Counsel & Secretary 3115 OVERHILL ROAD BIRMINGHAM AL 35223
Charbonneau Elissa Joy officer: Chief Medical Officer 24 HAWTHORNE CIRCLE YARMOUTH ME 04096
Anthony April Kaye Bullock officer: CEO and President, Encompass 3606 PRINCETON AVENUE DALLAS TX 75205
Herman Joan E director
Katz Leslye G director 1499 POST ROAD FAIRFIELD CT 06824
Levy Cheryl B. officer: Chief Human Resources Officer 3137 BROOK HIGHLAND DRIVE BIRMINGHAM AL 35242
Coltharp Douglas E officer: EVP, Chief Financial Officer C/O UNDER ARMOUR, INC. 1020 HULL STREET BALTIMORE MD 21230
Fay Edmund officer: Sr. Vice Pres. and Treasurer 3660 GRANDVIEW PARKWAY SUITE 200 BIRMINGHAM AL 35243

Encompass Health Headlines

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