1. What is the value of the company of HealthSouth / Encompass Health Corporation.
2. Solve for the following ratios
- Working capital
- Current ratio
- Acid test ratio
- Cash ratio
- Debt ratio
- Debt to equity ratio
- Gross profit ratio
- Operating profit ratio
- Profit ratio
- Return on equity
- Return on assets
Table of Contents Encompass Health Corporation and Subsidiaries Consolidated Statements of Shareholders' Equity Encompass Health Common Shareholders Number of Accumulated Common Capital in Other Shares Common Excess of Accumulated Comprehensive Treasury Noncontrolling Outstanding Stock Par Value Deficit Loss Stock Interests Total (In Millions) ( 98.3 5 1.1 S 2,747.4 $ (1,176.2) $ (1.3) $ (418.5) $ 242.9 $ 1,395,4 69.2 361.5 () (0.2) (8.3) (8.3) ) (103.7) (103.7) 28.9 28.9 0.1 3.2. 3.2 (71.1) (71.1) ) 292.3 -- - 38,8 38.8 (91.0) 0.7 1.3 0.5 3.9 2,588.7 (1.3) (885.2) 358.7 (1.1) ) (427.9) 98.9 280.3 74.5 (0.3) ) (16.6) (91.0) ) 3.3 1,557.0 433.2 (16.6) (109.3) 32.4 1.4 (70.2) ) (109.3) 32.4 0.1 1.4 (70.2) ) (0.8) (45.9) (45.9) December 31, 2017 Net income Receipt of treasury stock Dividends declared ($1.04 per share) Stock-based compensation Stock options exercised Distributions declared Capital contributions from consolidated affiliates Fair value adjustments to redeemable noncontrolling interests Other December 31, 2018 Net income Receipt of treasury stock Dividends declared ($1.10 per share) Stock-based compensation Stock options exercised Distributions declared Repurchases of common stock in open market Capital contributions from consolidated affiliates Fair value adjustments to redeemable noncontrolling interests Consolidation of Yuma Rehabilitation Hospital Other December 31, 2019 Net income Receipt of treasury stock Dividends declared ($1.12 per share) Exchange of Holdings shares Stock-based compensation Stock options exercised Distributions declared Repurchases of common stock in open market Capital contributions from consolidated affiliates Fair value adjustments to redeemable noncontrolling interests Other December 31, 2020 20.0 20.0 | | | | | |-| | | | | | | | | | |-| | | | | | | | | | |-| (147.6) (147.6) 0.7 4.3 (1.9) (492.3) 25.0 11.3 340.9 77.2 98.6 2,369.9 (526.5) 284.2 (0.2) ) (15.7) 25.0 13.7 1,693.1 361.4 (15.7) ) (111.6) 46.3 29.5 1.1 (72.1) ) (111.6) 0.6 27.1 19.2 - 29.5 0.1 1.1 (72.1) ) (0.1) ( (6.1) ) (6.1) 42.8 42.8 1.4 9.2 0.4 (2.5) $ (497.4) $ 1.4 (6.8) (0.1) 382.0 $ 1,970.0 S 99.4 S S 1.1 $ 2,326.6 s (242.3) $ Table of Contents Encompass Health Corporation and Subsidiaries Consolidated Statements of Cash Flows For the Year Ended December 31, 2020 2019 2018 (In Millions) S 368.8 $ 445.8 $ 0.6 375.4 (1.1) 2.8 243.0 52.0 199.7 7.2 4.0 2.3 (3.5) 3.8 29.5 52.4 218.7 4.5 7.7 (6.7) 6.6 114.4 40.0 (19.2) 7.4 (8.7) 8.3 85.9 (9.1) 5.9 9.2 Cash flows from operating activities: Net income Loss (income) from discontinued operations, net of tax Adjustments to reconcile net income to net cash provided by operating activities- Provision for government, class action, and related settlements Depreciation and amortization Amortization of debt-related items Loss on early extinguishment of debt Equity in net income of nonconsolidated affiliates Distributions from nonconsolidated affiliates Stock-based compensation Deferred tax expense (benefit) Gain on consolidation of Yuma Rehabilitation Hospital Other, net Changes in assets and liabilities, net of acquisitions - Accounts receivable Prepaid expenses and other assets Accounts payable Accrued payroll Other liabilities Net cash (used in) provided by operating activities of discontinued operations Total adjustments Net cash provided by operating activities Cash flows from investing activities: Acquisition of businesses, net of cash acquired Purchases of property and equipment Additions to capitalized software costs Purchases of intangible assets Proceeds from sale of restricted investments Purchases of restricted investments Other, net Net cash used in investing activities 7.0 11.5 6.6 14.8 (38.1) 0.1 13.6 92.0 (74.9) (0.2) 335.9 704.7 (22.9) (35.4) (6.1) 13.2 (128.9) (4.4) 188.9 635.3 6,1 0.8 388.1 762.4 (1.1) (396.0) (8.7) (3.5) 12.6 (8.7) (2.1) (407.5) (231.5) (372.4) (13.0) (18.7) 17.6 (32.9) (6.5) (657.4) (143.9) (254.5) (16.0) (5.7) 11.6 (13.3) (2.7) (424.5) Table of Contents Encompass Health Corporation and Subsidiaries Consolidated Statements of Cash Flows (Continued) For the Year Ended December 31, 2020 2019 2018 (in Millions) (20.6) 325.0 (390.0) (17.9) (0.1) Cash flows from financing activities: Proceeds from bond issuance Principal payments on debt, including pre-payments Borrowings on revolving credit facility Payments on revolving credit facility Principal payments under finance lease obligations Debt amendment and issuance costs Repurchases of common stock, including fees and expenses Dividends paid on common stock Purchase of equity interests in consolidated affiliates Distributions paid to noncontrolling interests of consolidated affiliates Taxes paid on behalf of employees for shares withheld Contributions from consolidated affiliates Other, net Net cash (used in) provided by financing activities Increase in cash, cash equivalents, and restricted cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents, and restricted cash at end of year 992.5 (718.3) 330.0 (375.0) (22.5) (20.3) (6.1) (111.9) (162.3) (72.2) (15.7) 34.9 1,000.0 (519.5) 635.0 (620.0) (19.5) (21.5) (45.9) (108.7) (162.9) (79.8) (16.6) 15.9 (8.3) 48.2 26.1 133.5 159.6 $ (100.8) (65.1) (75.4) (8.3) 12.6 19.4 (321.2) 16.7 116.8 133.5 1.0 (145.9) 151.3 159.6 S 310.9 S $ Reconciliation of Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents at beginning of period Restricted cash at beginning of period Restricted cash included in other long-term assets at beginning of period Cash, cash equivalents, and restricted cash at beginning of period 94.8 S 57.4 7.4 69.2 59.0 5.3 54.4 62.4 S 159.6 S 133.5 $ 116.8 S 94.8 $ Cash and cash equivalents at end of period Restricted cash at end of period Restricted cash included in other long-term assets at end of period Cash, cash equivalents, and restricted cash at end of period 224.0 S 65.4 21.5 310,9 s 57.4 7.4 159.6 $ 69.2 59.0 5.3 133.5 Supplemental cash flow information: Cash (paid) received during the year for- Interest Income tax refunds Income tax payments (168.4) S 1.4 (34.3) (155.7) $ 0.1 (104.2) (149.6) 0.6 (115.4) Supplemental schedule of noncash financing activities: Adoption of ASC 842 S 349.4 $ Table of Contents Encompass Health Corporation and Subsidiaries Consolidated Balance Sheets As of December 31, 2020 2019 (In Millions, Except Share Data) 224.0 $ 65.4 572.8 86.4 948.6 2,206.6 245.7 2,318.7 431.3 94.8 57.4 506.1 97.5 755.8 1,959.3 276.5 2,305.2 476.3 2.9 304.7 6,080.7 295.0 6,445.9 Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable Prepaid expenses and other current assets Total current assets Property and equipment, net Operating lease right-of-use assets Goodwill Intangible assets, net Deferred income tax assets Other long-term assets Total assets) Liabilities and Shareholders' Equity Current liabilities: Current portion of long-term debt Current operating lease liabilities Accounts payable Accrued payroll Accrued interest payable Other current liabilities Total current liabilities Long-term debt, net of current portion Long-term operating lease liabilities Self-insured risks Deferred income tax liabilities Other long-term liabilities 38.3 $ 44.8 115.0 253.8 47.1 218.3 717.3 3,250.6 209.6 121.2 51.8 93.8 4,444.3 39.3 40.4 94.6 210.5 32.4 303.8 721.0 3,023.3 243.8 117.2 42.7 4,148.0 31.6 239.6 Commitments and contingencies Redeemable noncontrolling interests Shareholders' equity: Encompass Health shareholders' equity: Common stock, S.01 par value; 200,000,000 shares authorized; issued: 113,835,708 in 2020; 113,230,774 in 2019 Capital in excess of par value Accumulated deficit Treasury stock, at cost (14,428,235 shares in 2020 and 14,637,858 shares in 2019) Total Encompass Health shareholders' equity Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity 1.1 2,326.6 (242.3) (497.4) 1,588.0 382.0 1,970.0 6,445.9 1.1 2,369.9 (526.5) (492.3) 1,352.2 340.9 1,693.1 6,080.7 (1) Our consolidated assets as of December 31, 2020 and December 31, 2019 include total assets of variable interest entities of $221.2 million and $215.0 million, respectively, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of December 31, 2020 and December 31, 2019 include total liabilities of the variable interest entities of $46.8 million and $41.1 million, respectively. See Note 3, Variable Interest Entities
