Universal Health Services Inc (UHS)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 7,722,180 | 10,688,630 | 10,677,047 | 7,586,131 | 4,511,300 | 1,520,886 | 1,508,556 | 1,483,255 | 1,474,339 | 1,466,560 | 1,468,057 | 1,451,097 | 1,427,134 | 1,404,301 | 1,371,876 | 1,317,415 | 1,288,132 | 1,260,898 | 1,239,425 | 1,261,710 |
| Inventory | US$ in thousands | 220,940 | 220,062 | 218,780 | 216,058 | 216,988 | 214,587 | 215,380 | 216,236 | 218,517 | 217,818 | 209,569 | 208,302 | 206,839 | 202,824 | 195,141 | 193,961 | 190,417 | 176,105 | 167,626 | 162,597 |
| Inventory turnover | 34.95 | 48.57 | 48.80 | 35.11 | 20.79 | 7.09 | 7.00 | 6.86 | 6.75 | 6.73 | 7.01 | 6.97 | 6.90 | 6.92 | 7.03 | 6.79 | 6.76 | 7.16 | 7.39 | 7.76 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,722,180K ÷ $220,940K
= 34.95
The inventory turnover ratio for Universal Health Services Inc has exhibited fluctuations over the observed periods. The ratio indicates how efficiently the company is managing its inventory by showing how many times the inventory is sold and replaced over a specific time period.
From March 31, 2020, to June 30, 2022, the inventory turnover ratio varied between 6.76 and 7.39, indicating relatively stable inventory management practices during this period. However, there was a slight increase observed in the latter part of 2022, with ratios ranging from 6.73 to 7.09.
The most notable shift occurred in the last quarter of 2023 and the first two quarters of 2024, where the inventory turnover ratio experienced a significant surge from 20.79 to 48.80. This sharp increase suggests a substantial improvement in inventory management efficiency or a change in the company's inventory management strategy during this period.
It is essential for Universal Health Services Inc to closely monitor and analyze the reasons behind such drastic changes in the inventory turnover ratio to ensure optimal inventory management and operational performance. Additionally, management should evaluate the impact of these fluctuations on working capital, cash flow, and overall financial health to make informed decisions regarding inventory levels and procurement practices.
Peer comparison
Dec 31, 2024
Dec 31, 2024