Universal Health Services Inc (UHS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,827,900 | 14,282,000 | 13,399,400 | 12,642,100 | 11,558,900 |
| Total current assets | US$ in thousands | 2,816,290 | 2,811,350 | 2,537,340 | 2,263,560 | 3,281,870 |
| Total current liabilities | US$ in thousands | 2,210,410 | 2,013,350 | 1,914,420 | 1,984,110 | 2,481,040 |
| Working capital turnover | 26.12 | 17.90 | 21.51 | 45.24 | 14.43 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,827,900K ÷ ($2,816,290K – $2,210,410K)
= 26.12
Universal Health Services Inc's working capital turnover has been fluctuating over the past five years. The ratio increased significantly from 14.43 in December 31, 2020, to 45.24 in December 31, 2021, indicating a substantial improvement in efficiency in utilizing working capital to generate revenue. However, in the subsequent years, the working capital turnover decreased to 21.51 in December 31, 2022, 17.90 in December 31, 2023, and then increased to 26.12 in December 31, 2024.
These fluctuations suggest varying levels of effectiveness in managing working capital during these years. While the significant increase in 2021 could signify a more efficient deployment of working capital during that period, the subsequent decrease in the ratio in the following years may indicate challenges in maintaining this level of efficiency.
It is important for Universal Health Services Inc to analyze the factors contributing to these fluctuations in working capital turnover to ensure optimal utilization of working capital resources in the future and uphold sustainable operational efficiency.
Peer comparison
Dec 31, 2024