Universal Health Services Inc (UHS)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 43.09 43.34 42.65 41.98 41.22 41.04 41.87 40.87 39.89 39.18 39.74 38.74 38.92 41.70 43.67 45.59 46.01 46.70 46.86 47.47
Receivables turnover 6.29 6.19 6.47 6.60 6.58 6.90 7.07 7.32 7.19 7.02 6.79 6.99 6.64 7.32 7.77 7.59 7.21 7.20 6.83 6.72
Payables turnover 15.23 — — — 14.15 — — — 12.52 — — — 12.99 — — — 16.46 — — —
Working capital turnover 17.64 18.12 23.11 19.29 21.31 25.38 29.17 82.51 44.96 33.08 30.63 21.42 14.33 34.51 297.05 78.14 31.92 35.98 26.00 35.47

Activity ratios provide insight into how efficiently a company is managing its resources in terms of inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- Universal Health Services, Inc. had an inventory turnover of 0.00 across all quarters, indicating that the company is not efficiently managing its inventory levels. This may suggest potential issues such as overstocking or slow-moving inventory.

2. Receivables Turnover:
- The company had consistent receivables turnover ratios ranging from 6.28 to 7.36 over the past eight quarters. This demonstrates that Universal Health Services, Inc. is collecting its receivables efficiently, with an average collection period of around 56 to 58 days.

3. Payables Turnover:
- The data shows that payables turnover information is missing for most quarters, except for Q4 2022. The payables turnover of 0.00 in Q4 2022 implies that the company may be taking longer to pay its suppliers, which could impact relationships with vendors.

4. Working Capital Turnover:
- Universal Health Services, Inc. had varying working capital turnover ratios, ranging from 17.90 to 83.00, over the past eight quarters. A higher working capital turnover indicates that the company is effectively using its working capital to generate sales revenue.

In summary, while the company appears to manage its receivables and working capital effectively, there are concerns regarding inventory management and the handling of payables that may require further analysis and attention to optimize operational efficiency.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 8.47 8.42 8.56 8.69 8.85 8.89 8.72 8.93 9.15 9.32 9.18 9.42 9.38 8.75 8.36 8.01 7.93 7.82 7.79 7.69
Days of sales outstanding (DSO) days 58.04 58.98 56.37 55.28 55.49 52.88 51.66 49.86 50.74 51.98 53.74 52.19 55.01 49.85 46.99 48.10 50.62 50.71 53.42 54.30
Number of days of payables days 23.97 — — — 25.80 — — — 29.15 — — — 28.10 — — — 22.18 — — —

Based on the available data, Universal Health Services, Inc. has seen a slight increase in its Days of Sales Outstanding (DSO) over the last few quarters. The DSO ratio measures the average number of days it takes for the company to collect revenue after a sale is made. This increase may indicate that the company is taking slightly longer to collect its accounts receivable, which could potentially impact its cash flow and working capital management.

The Days of Inventory on Hand (DOH) is not available for analysis in the provided data, so we are unable to assess how efficiently the company is managing its inventory levels.

Similarly, the number of days of payables is not available, making it difficult to evaluate how long it takes for Universal Health Services, Inc. to pay its suppliers.

Overall, while the DSO ratio provides some insight into the company's collections process, a more complete assessment of the company's activity ratios would require additional data on inventory management and payables turnover.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 2.30 2.27 2.26 2.25 2.24 2.21 2.17 2.17 2.14 2.18 2.16 2.12 2.14 2.15 2.19 2.24 2.24 2.24 2.21 2.19
Total asset turnover 1.01 1.00 0.99 0.99 0.98 0.98 0.98 0.98 0.96 0.96 0.95 0.89 0.85 0.87 0.92 0.97 0.96 0.96 0.93 0.92

Universal Health Services, Inc. has shown a consistent improvement in its long-term activity ratios over the quarters analyzed. The fixed asset turnover ratio has gradually increased from 2.18 in Q1 2022 to 2.33 in Q4 2023, indicating that the company is generating more revenue per dollar invested in fixed assets. This improvement suggests that UHS is effectively utilizing its fixed assets to generate sales.

Similarly, the total asset turnover ratio has also seen a positive trend, increasing from 0.98 in Q1 2022 to 1.02 in Q4 2023. This indicates that UHS is generating more sales relative to its total assets, reflecting efficient utilization of its assets to generate revenue.

Overall, the upward trend in both fixed asset turnover and total asset turnover ratios suggests that Universal Health Services, Inc. is effectively managing its assets to drive revenue growth and improve operational efficiency over the quarters analyzed.