Universal Health Services Inc (UHS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.40 | 1.33 | 1.14 | 1.32 | 1.23 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,811,350K ÷ $2,013,350K
= 1.40
The current ratio of Universal Health Services, Inc. has shown some fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.
In 2023, the current ratio stands at 1.40, reflecting an improvement compared to the previous year, where it was 1.33. This suggests that the company had $1.40 in current assets for every $1 in current liabilities at the end of 2023, indicating a better ability to meet its short-term obligations.
The current ratio was relatively low in 2021 at 1.14, which might have raised concerns about the company's short-term liquidity position. However, it bounced back in 2022 to 1.33 and further improved in 2023 to 1.40, indicating a positive trend in managing short-term liquidity.
Comparing the current ratios over the past five years, the company has generally maintained a current ratio above 1, which implies that it has had sufficient current assets to cover its current liabilities. It is important for investors and creditors to monitor the current ratio over time to assess changes in Universal Health Services, Inc.'s liquidity position and financial health.
Peer comparison
Dec 31, 2023