Universal Health Services Inc (UHS)
Payables 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 |
| Payables | US$ in thousands | 613,974 | 636,601 | 658,900 | 570,523 | 446,957 |
| Payables turnover | 15.23 | 14.15 | 12.53 | 12.99 | 16.62 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $9,349,380K ÷ $613,974K
= 15.23
The payables turnover ratio for Universal Health Services, Inc. for the years 2019 to 2023 is consistently reported as 0.00. A payables turnover of 0.00 indicates that the company is not effectively managing its accounts payable during these years. This could potentially suggest that the company is not paying its suppliers on time or is not utilizing its accounts payable efficiently.
A low or zero payables turnover ratio may signal liquidity issues or inefficiencies in managing working capital. It is important for companies to strike a balance between taking advantage of trade credit terms and maintaining healthy supplier relationships. Further analysis of the company's cash flow management and procurement processes may provide insights into the reasons behind the consistently low payables turnover ratio.
Peer comparison
Dec 31, 2023