Universal Health Services Inc (UHS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 39.50% | 89.00% | 88.71% | 88.86% |
| Operating profit margin | 10.63% | 8.23% | 7.49% | 10.78% | 11.75% |
| Pretax margin | 9.46% | 6.58% | 6.46% | 10.23% | 10.83% |
| Net profit margin | 7.22% | 5.03% | 5.04% | 7.84% | 8.17% |
The Gross Profit Margin for Universal Health Services Inc has remained relatively stable over the years, standing at 88.86% in 2020, 88.71% in 2021, and increasing slightly to 89.00% in 2022. However, there was a significant drop to 39.50% in 2023, before sharply increasing to 100.00% in 2024. This fluctuation may indicate changes in the company's cost structure or revenue mix.
The Operating Profit Margin has experienced some fluctuations, starting at 11.75% in 2020 and gradually declining to 7.49% in 2022. There was a slight increase to 8.23% in 2023, followed by a more significant improvement to 10.63% in 2024. These changes suggest shifts in operating efficiency or the impact of various business strategies.
Looking at the Pretax Margin, there was a decrease from 10.83% in 2020 to 6.46% in 2022, followed by a slight recovery to 9.46% in 2024. This indicates changes in the company's performance before tax, potentially influenced by factors such as operating expenses or changes in revenue.
The Net Profit Margin also shows variability, with a decrease from 8.17% in 2020 to 5.04% in 2022, before increasing to 7.22% in 2024. These fluctuations may reflect changes in Universal Health Services Inc's bottom-line profitability, impacted by factors such as interest payments, taxes, and other expenses.
In conclusion, the profitability ratios of Universal Health Services Inc demonstrate fluctuations over the analyzed period, indicating changes in the company's operational efficiency, cost structure, and overall financial performance. Further analysis would be needed to understand the specific drivers behind these variations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.62% | 8.42% | 7.44% | 10.41% | 10.08% |
| Return on assets (ROA) | 7.89% | 5.14% | 5.01% | 7.57% | 7.00% |
| Return on total capital | 24.90% | 18.66% | 17.92% | 22.90% | 21.52% |
| Return on equity (ROE) | 16.92% | 11.67% | 11.41% | 16.28% | 14.94% |
Universal Health Services Inc has shown consistent profitability over the past five years, as evidenced by its profitability ratios.
- Operating Return on Assets (Operating ROA) has ranged from 7.44% to 11.62% during the period, indicating that the company is generating a stable return on its operating assets. The highest Operating ROA was recorded in December 2024 at 11.62%, reflecting efficient utilization of assets to generate operating profits.
- Return on Assets (ROA) has varied between 5.01% and 7.89% over the period, with the highest return achieved in December 2024. This ratio shows the company's ability to generate profits from its total assets, with an increasing trend in recent years.
- Return on Total Capital has fluctuated between 17.92% and 24.90% during the period, with the highest return observed in December 2024. This ratio demonstrates the company's effectiveness in generating returns for both equity and debt holders.
- Return on Equity (ROE) has ranged from 11.41% to 16.92%, indicating the company's ability to generate returns for its shareholders. The highest ROE was recorded in December 2024, indicating improved profitability for equity investors.
Overall, Universal Health Services Inc has maintained solid profitability ratios, showing improvements in generating returns for both its operating assets and capital employed, as well as delivering value to its equity shareholders.