Universal Health Services Inc (UHS)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.40 | 1.38 | 1.29 | 1.37 | 1.33 | 1.27 | 1.22 | 1.07 | 1.14 | 1.19 | 1.20 | 1.24 | 1.32 | 1.12 | 1.02 | 1.09 | 1.23 | 1.19 | 1.27 | 1.18 |
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 been gradually increasing over the past four quarters, reflecting a strengthening liquidity position. The ratio has improved from 1.07 in Q1 2022 to 1.40 in Q4 2023. This indicates that the company's current assets, such as cash, accounts receivable, and inventory, are sufficient to cover its current liabilities in each of the reported periods.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive signal for short-term financial health and ability to meet obligations. The consistent upward trend in the current ratio suggests that the company has been managing its working capital effectively and may have improved its cash flow management.
However, it is important to note that a very high current ratio could also indicate inefficient use of assets, as excess liquidity may not be generating optimal returns. Therefore, while the increasing current ratio is generally a positive indicator, further analysis of the company's overall financial health and operational efficiency would provide a more comprehensive insight into its financial performance.
Peer comparison
Dec 31, 2023