Universal Health Services Inc (UHS)
Working capital 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 current assets | US$ in thousands | 2,811,350 | 2,537,340 | 2,263,560 | 3,281,870 | 1,915,930 |
| Total current liabilities | US$ in thousands | 2,013,350 | 1,914,420 | 1,984,110 | 2,481,040 | 1,563,390 |
| Working capital turnover | 17.64 | 21.31 | 44.94 | 14.30 | 31.81 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,075,300K ÷ ($2,811,350K – $2,013,350K)
= 17.64
Universal Health Services, Inc.'s working capital turnover has exhibited fluctuations over the past five years. The ratio peaked at 45.24 in 2021, indicating that the company efficiently generated revenue relative to its working capital. However, in 2023, the working capital turnover decreased to 17.90, reflecting a decline in the company's ability to convert working capital into sales. This downward trend suggests potential inefficiencies in managing working capital or slower revenue generation. It is essential for Universal Health Services to closely monitor and optimize its working capital turnover to ensure effective utilization of funds and sustained business performance.
Peer comparison
Dec 31, 2023