Universal Health Services Inc (UHS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 125,983 | 119,439 | 102,818 | 115,301 | 1,224,490 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,210,410 | 2,013,350 | 1,914,420 | 1,984,110 | 2,481,040 |
| Quick ratio | 0.06 | 0.06 | 0.05 | 0.06 | 0.49 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($125,983K
+ $—K
+ $—K)
÷ $2,210,410K
= 0.06
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets excluding inventory. For Universal Health Services Inc, the quick ratio has shown a concerning trend over the past five years.
As of December 31, 2020, the quick ratio was 0.49, indicating that the company had $0.49 in liquid assets available to cover each $1 of current liabilities. However, in the subsequent years, the quick ratio deteriorated significantly. By December 31, 2021, the quick ratio had dropped to a very low 0.06, which implies a severe liquidity strain as the company had only $0.06 in quick assets for every $1 of current liabilities.
The trend continued in the following years, with the quick ratio staying around 0.05 to 0.06. This suggests that Universal Health Services Inc may be facing challenges in meeting its short-term obligations with its readily available assets.
Overall, the quick ratio analysis reveals a concerning liquidity position for Universal Health Services Inc, indicating potential difficulties in managing short-term financial obligations over the past five years.
Peer comparison
Dec 31, 2024