Universal Health Services Inc (UHS)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,075,310 | 13,828,440 | 13,619,410 | 13,417,830 | 13,272,470 | 13,132,410 | 12,966,840 | 12,845,690 | 12,565,440 | 12,389,350 | 12,142,520 | 11,670,220 | 11,472,510 | 11,281,820 | 11,174,860 | 11,283,260 | 11,254,690 | 11,112,940 | 10,941,340 | 10,772,010 |
| Total current assets | US$ in thousands | 2,811,350 | 2,753,000 | 2,624,710 | 2,559,100 | 2,537,340 | 2,456,560 | 2,436,220 | 2,301,900 | 2,263,560 | 2,343,300 | 2,365,300 | 2,784,160 | 3,281,870 | 2,961,150 | 2,296,790 | 1,834,350 | 1,915,930 | 1,930,630 | 1,965,030 | 1,960,440 |
| Total current liabilities | US$ in thousands | 2,013,350 | 1,989,820 | 2,035,350 | 1,863,380 | 1,914,420 | 1,939,200 | 1,991,700 | 2,146,220 | 1,984,110 | 1,968,820 | 1,968,810 | 2,239,380 | 2,481,040 | 2,634,220 | 2,259,170 | 1,689,950 | 1,563,390 | 1,621,770 | 1,544,270 | 1,656,770 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,075,310K ÷ ($2,811,350K – $2,013,350K)
= 17.64
Universal Health Services, Inc. has shown fluctuating working capital turnover ratios over the past eight quarters, with a significant change from Q1 2022 to Q2 2022 where it increased from 83.00 to 29.35. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to support its operations. In this case, higher ratios indicate that the company is effectively managing its working capital to generate sales revenue.
The peak working capital turnover ratio of 83.00 in Q1 2022 suggests the company was able to convert its working capital into revenue at a very high rate during that period. However, the ratio decreased in subsequent quarters, indicating a potential decline in efficiency in utilizing working capital. The downward trend continued until reaching a low point of 17.90 in Q4 2023.
The varying ratios could reflect changes in the company's operational efficiency, management of inventory, accounts receivable, and accounts payable. Further analysis is needed to understand the factors contributing to the fluctuating working capital turnover ratios and whether they align with the company's overall strategic objectives.
Peer comparison
Dec 31, 2023