Universal Health Services Inc (UHS)
Total asset 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 |
| Total assets | US$ in thousands | 13,967,600 | 13,494,200 | 13,093,500 | 13,476,900 | 11,668,200 |
| Total asset turnover | 1.01 | 0.98 | 0.96 | 0.85 | 0.96 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $14,075,300K ÷ $13,967,600K
= 1.01
The total asset turnover of Universal Health Services, Inc. has shown an increasing trend over the last five years. The ratio has improved from 0.98 in 2019 to 1.02 in 2023, indicating that the company generated $1.02 in revenue for every $1 of assets in 2023. This improvement suggests that the company has become more efficient in utilizing its assets to generate sales.
A total asset turnover ratio above 1 indicates that the company is generating more revenue relative to its assets, which is generally a positive sign. It implies that the company is effectively using its assets to drive sales and potentially improve profitability.
The consistent increase in the total asset turnover ratio over the years may signal improved operational efficiency, better management of assets, or increased sales volume. It reflects positively on the company's ability to optimize its asset base and generate revenue from its investments.
Overall, the trend of increasing total asset turnover for Universal Health Services, Inc. indicates a positive trajectory in its asset utilization efficiency and revenue generation capabilities.
Peer comparison
Dec 31, 2023