Universal Health Services Inc (UHS)

Short-term

Turnover ratios

Based on the data provided for Universal Health Services Inc, let's analyze the activity ratios:

1. Inventory Turnover: The inventory turnover ratio measures the efficiency of a company in managing its inventory levels. The trend for Universal Health Services Inc shows a gradual decline in the inventory turnover ratio from 7.76 on March 31, 2020, to a low of 6.73 on September 30, 2022, before slightly increasing to 7.09 on September 30, 2023. However, there was a significant spike in the ratio to 20.79 on December 31, 2023, followed by a substantial increase to 48.80 on June 30, 2024, and then dropping to 34.95 on December 31, 2024. This abrupt fluctuation may indicate a potential issue with inventory management during that period.

2. Receivables Turnover: Unfortunately, there is no data available for the receivables turnover ratio, which makes it challenging to assess the company's effectiveness in collecting accounts receivable promptly.

3. Payables Turnover: Similar to the receivables turnover, there is no data provided for the payables turnover ratio, making it difficult to evaluate how efficiently the company manages its accounts payable.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company is using its working capital to generate revenue. The trend for Universal Health Services Inc shows fluctuations in the working capital turnover ratio, with values ranging from a high of 299.79 on June 30, 2020, to a low of 17.90 on December 31, 2023. The ratio gradually increased in subsequent periods, reaching 26.12 on December 31, 2024. This indicates varying levels of efficiency in utilizing working capital to drive revenue generation over the years.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Universal Health Services Inc's operational efficiency, the lack of data for receivables turnover and payables turnover prevents a comprehensive evaluation of the company's overall activity management.

---

Average number of days

Based on the provided data for Universal Health Services Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH for Universal Health Services Inc has been fluctuating over the period from March 31, 2020, to December 31, 2024, ranging from 7.48 days to 54.21 days.
- There was a sharp decrease in the DOH from December 31, 2023, to March 31, 2024, implying a significant improvement in managing inventory levels during this period.
- Overall, the company may have varying levels of inventory management efficiency, and closer monitoring is needed to optimize inventory turnover.

2. Days of Sales Outstanding (DSO):
- The data provided does not show any values for DSO, which indicates that information regarding the company's accounts receivable management is not available for analysis.
- Without DSO data, it is challenging to assess the efficiency of Universal Health Services Inc in collecting revenues from its credit sales over time.

3. Number of Days of Payables:
- Similarly, no values for the number of days of payables are available in the provided data, leading to the inability to evaluate the company's payable turnover or liquidity position in terms of managing its trade payables.
- Understanding the payables turnover cycle is crucial for assessing the company's vendor payment practices and cash flow management.

In conclusion, while insights into the inventory management of Universal Health Services Inc can be drawn from the DOH data, the absence of DSO and payables information limits a comprehensive analysis of the company's overall efficiency in managing its working capital and operating cycle. Additional data would be required to fully evaluate and interpret the activity ratios for a more holistic assessment of the company's operational performance.

---

Long-term

Universal Health Services Inc's fixed asset turnover ratio has shown a relatively stable performance over the analyzed period, fluctuating between 2.03 and 2.28, with a generally positive trend. This indicates that the company is effectively utilizing its fixed assets to generate revenue.

In terms of total asset turnover, the ratio has exhibited some variability but has been increasing gradually from 0.86 at the end of December 2020 to 1.09 as of December 31, 2024. This suggests that Universal Health Services Inc is efficiently using its total assets to generate sales, reflecting a positive trend in the company's asset management efficiency.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Universal Health Services Inc is effectively leveraging its assets to drive revenue generation and optimize operational efficiency.