Universal Health Services Inc (UHS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,587,790 | 8,640,310 | 1,474,340 | 1,427,130 | 1,288,130 |
| Inventory | US$ in thousands | 220,940 | 216,988 | 218,517 | 206,839 | 190,417 |
| Inventory turnover | 7.19 | 39.82 | 6.75 | 6.90 | 6.76 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,587,790K ÷ $220,940K
= 7.19
Universal Health Services Inc's inventory turnover has been relatively stable over the last five years, ranging from 6.75 to 7.19 times. This indicates that the company is efficiently managing its inventory and converting it into sales. However, there was a significant spike in the inventory turnover ratio to 39.82 times as of December 31, 2023, which may suggest a sudden increase in sales relative to the level of inventory held. It is important for the company to monitor and analyze the reasons behind such a significant fluctuation to ensure optimal inventory management practices. Overall, Universal Health Services Inc's inventory turnover ratio reflects effective inventory management, with room for further analysis and potential improvements.
Peer comparison
Dec 31, 2024