Universal Health Services Inc (UHS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,349,380 | 9,007,630 | 8,257,540 | 7,411,720 | 7,428,260 |
| Inventory | US$ in thousands | 216,988 | 218,517 | 206,839 | 190,417 | 159,889 |
| Inventory turnover | 43.09 | 41.22 | 39.92 | 38.92 | 46.46 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,349,380K ÷ $216,988K
= 43.09
The inventory turnover ratio for Universal Health Services, Inc. has been consistently reported as 0.00 for the past five years. This implies that the company is not efficiently managing its inventory levels or is facing challenges in selling its inventory in a timely manner. A low or zero inventory turnover ratio suggests that the company may have excess or obsolete inventory on hand, which can tie up working capital and lead to potential write-downs or losses.
It is important for the company to address this issue to improve its operational efficiency and financial performance. Management should focus on better inventory management practices, such as optimizing inventory levels, improving demand forecasting, and reducing excess or obsolete inventory. Increasing the inventory turnover ratio can help the company free up cash, reduce carrying costs, and enhance overall profitability.
Peer comparison
Dec 31, 2023