Universal Health Services Inc (UHS)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.44 | 7.51 | 7.48 | 10.40 | 17.56 | 51.50 | 52.11 | 53.21 | 54.10 | 54.21 | 52.10 | 52.40 | 52.90 | 52.72 | 51.92 | 53.74 | 53.96 | 50.98 | 49.36 | 47.04 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 10.44 | 7.51 | 7.48 | 10.40 | 17.56 | 51.50 | 52.11 | 53.21 | 54.10 | 54.21 | 52.10 | 52.40 | 52.90 | 52.72 | 51.92 | 53.74 | 53.96 | 50.98 | 49.36 | 47.04 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.44 + — – —
= 10.44
The cash conversion cycle of Universal Health Services Inc has shown fluctuations over the years based on the provided data.
From March 31, 2020, to December 31, 2020, the cash conversion cycle increased steadily from 47.04 days to 53.96 days, indicating a longer period required to convert investments in inventory/raw materials into cash receipts from sales.
There was a slight decrease from March 31, 2021, to June 30, 2021, as the cycle reduced to 51.92 days but then increased again reaching 54.21 days by September 30, 2022.
However, after September 30, 2022, the cash conversion cycle started to show a declining trend, reaching 10.44 days by December 31, 2024. This significant drop in the cash conversion cycle suggests an improvement in managing inventory, receivables, and payables, leading to a shorter duration in converting investments into cash.
Overall, Universal Health Services Inc's cash conversion cycle has experienced fluctuations, but the recent trend of decreasing days indicates potential efficiency in managing working capital and turning investments into cash more quickly.
Peer comparison
Dec 31, 2024