Universal Health Services Inc (UHS)

Short-term

Turnover ratios

The activity ratios for Universal Health Services, Inc. indicate the efficiency of the company in managing its various operating assets and liabilities.

1. Inventory Turnover:
- In all the years provided, the inventory turnover ratio is reported as 0.00. This could imply that the company does not maintain significant levels of inventory or that the information regarding inventory is not available or meaningful for this particular industry.

2. Receivables Turnover:
- The receivables turnover ratio shows a gradual decline from 7.29 in 2019 to 6.38 in 2023. This indicates that the company is taking slightly longer to collect its accounts receivable over the years. However, the values for all years are relatively stable, suggesting that the company has a consistent collection process in place.

3. Payables Turnover:
- Similar to inventory turnover, the payables turnover ratio is reported as 0.00 for all years. This could suggest that the company may not have significant payables, or the information is not disclosed.

4. Working Capital Turnover:
- The working capital turnover ratio shows fluctuations over the years, with a peak in 2021 at 45.24 and a significant decrease in 2023 to 17.90. This metric indicates how efficiently the company generates revenue relative to its working capital. The decrease in 2023 could suggest a lower revenue generation efficiency compared to the previous years.

In summary, while the company's receivables turnover remains relatively stable, the lack of information for inventory and payables turnover limits a comprehensive analysis of the overall efficiency in managing assets and liabilities. The working capital turnover ratio fluctuates, indicating variations in revenue generation efficiency over the years. Factors beyond the financial ratios may need to be considered to provide a more detailed understanding of Universal Health Services, Inc.'s operating performance.

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Average number of days

Universal Health Services, Inc.'s days of sales outstanding (DSO) have shown a slightly increasing trend over the past five years, with the DSO increasing from 50.07 days in 2019 to 57.20 days in 2023. This indicates that on average, the company is taking longer to collect its accounts receivable, which could potentially impact its cash flow and liquidity position.

However, without the data for days of inventory on hand and number of days of payables, it is challenging to give a comprehensive analysis of the company's activity ratios. Having this additional information would provide a more complete picture of Universal Health Services, Inc.'s inventory management efficiency and payment terms with suppliers.

Overall, monitoring and improving days of sales outstanding can be crucial for the company to optimize its working capital management and ensure a healthy cash conversion cycle.

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Long-term

Universal Health Services, Inc.'s long-term activity ratios indicate how efficiently the company utilizes its assets to generate sales. The fixed asset turnover has been relatively stable over the past five years, ranging from 2.15 to 2.33. This ratio suggests that for every dollar invested in fixed assets, the company generates between $2.15 and $2.33 in sales.

On the other hand, the total asset turnover has shown a slight upward trend, increasing from 0.86 in 2020 to 1.02 in 2023. This improvement indicates that the company is generating more revenue relative to its total assets. Overall, both ratios suggest that Universal Health Services is effectively utilizing its assets to drive revenue growth, with the total asset turnover showing more significant improvement over the period analyzed.