Universal Health Services Inc (UHS)

Gross profit margin

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
Gross profit (ttm) US$ in thousands 8,105,760 4,729,136 4,340,466 7,071,908 9,770,676 12,504,520 12,290,100 12,090,670 11,925,020 11,761,070 11,579,540 11,470,980 11,214,980 11,049,500 10,838,470 10,424,800 10,270,760 10,107,310 10,038,700 10,141,830
Revenue (ttm) US$ in thousands 15,827,930 15,417,760 15,017,500 14,658,040 14,281,980 14,025,410 13,798,670 13,573,940 13,399,380 13,227,650 13,047,620 12,922,090 12,642,120 12,453,810 12,210,350 11,742,220 11,558,900 11,368,210 11,278,120 11,403,540
Gross profit margin 51.21% 30.67% 28.90% 48.25% 68.41% 89.16% 89.07% 89.07% 89.00% 88.91% 88.75% 88.77% 88.71% 88.72% 88.76% 88.78% 88.86% 88.91% 89.01% 88.94%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $8,105,760K ÷ $15,827,930K
= 51.21%

The gross profit margin of Universal Health Services Inc has shown a generally stable trend over the past few years, fluctuating within a narrow range between 88.71% and 89.16%. The company consistently maintained a high gross profit margin from March 2020 to March 2023, indicating strong profitability in its core operations.

However, there was a significant decline in gross profit margin in the last quarter of 2023, dropping sharply to 68.41%. This sudden decrease may raise concerns about the company's ability to efficiently generate profits from its sales.

The gross profit margin further deteriorated in the following quarters, reaching the lowest point of 28.90% in June 2024, before recovering slightly to 51.21% by December 2024. Such a drastic decline in profitability could be attributed to various factors, such as rising costs, pricing pressures, or changes in revenue mix.

Overall, while Universal Health Services Inc has historically maintained a high gross profit margin, the recent downward trend in profitability raises questions about the company's operational efficiency and financial performance that warrant further investigation.


Peer comparison

Dec 31, 2024

Company name
Symbol
Gross profit margin
Universal Health Services Inc
UHS
51.21%
HCA Holdings Inc
HCA
50.44%
Tenet Healthcare Corporation
THC
35.63%