Universal Health Services Inc (UHS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,075,300 | 13,272,500 | 12,558,400 | 11,452,600 | 11,215,500 |
| Receivables | US$ in thousands | 2,238,260 | 2,017,720 | 1,746,640 | 1,728,930 | 1,560,850 |
| Receivables turnover | 6.29 | 6.58 | 7.19 | 6.62 | 7.19 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,075,300K ÷ $2,238,260K
= 6.29
Universal Health Services, Inc.'s receivables turnover ratio has fluctuated over the past five years, ranging from 6.38 to 7.29. A higher receivables turnover ratio indicates that the company is more efficient in collecting outstanding receivables from its customers. In this case, the decreasing trend in the receivables turnover ratio from 7.29 in 2019 to 6.38 in 2023 may suggest that the company is taking longer to collect its accounts receivables.
A lower receivables turnover ratio could indicate potential issues such as difficulty in collecting receivables promptly, offering lenient credit terms, or potential issues with the quality of the company's receivables. It is important for Universal Health Services, Inc. to monitor this ratio closely to ensure the timely collection of outstanding receivables and overall efficiency in managing its accounts receivables.
Peer comparison
Dec 31, 2023