Universal Health Services Inc (UHS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 50.79 | 9.17 | 54.10 | 52.90 | 53.96 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 50.79 | 9.17 | 54.10 | 52.90 | 53.96 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.79 + — – —
= 50.79
The cash conversion cycle of Universal Health Services Inc has shown some fluctuations over the five-year period analyzed. In December 2020, the company had a cash conversion cycle of 53.96 days, indicating that it took nearly 54 days to convert its investments in inventory and other resources back into cash.
By December 2021, the cash conversion cycle decreased slightly to 52.90 days, showing some improvement in the company's efficiency in managing its working capital. However, in December 2022, the cycle increased to 54.10 days, suggesting potential challenges in managing cash flow and working capital effectively.
In December 2023, there was a significant drop in the cash conversion cycle to 9.17 days, which may indicate more efficient management of inventory and receivables leading to faster cash conversion. By December 2024, the cycle increased again to 50.79 days, showing a slight deterioration in cash conversion efficiency compared to the previous year.
Overall, Universal Health Services Inc has experienced fluctuations in its cash conversion cycle over the period analyzed, with some years showing improvements in efficiency while others showing slight deteriorations. Monitoring and managing the cash conversion cycle effectively will be essential for the company to optimize its working capital and cash flow in the future.
Peer comparison
Dec 31, 2024