Universal Health Services Inc (UHS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,175,380 | 1,003,560 | 1,363,090 | 1,358,350 | 1,215,910 |
| Revenue | US$ in thousands | 14,075,300 | 13,272,500 | 12,558,400 | 11,452,600 | 11,215,500 |
| Operating profit margin | 8.35% | 7.56% | 10.85% | 11.86% | 10.84% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,175,380K ÷ $14,075,300K
= 8.35%
Universal Health Services, Inc.'s operating profit margin has exhibited some fluctuations over the past five years. The trend shows a decrease in the operating profit margin from 11.75% in 2020 to 8.23% in 2023. This implies that the company's ability to generate profit from its core operations has declined over the years. However, it's worth noting that the operating profit margin was relatively higher in 2021 and 2019 at 10.78% and 10.69%, respectively.
The decreasing trend in the operating profit margin may raise concerns about the company's operational efficiency and profitability. It suggests that Universal Health Services, Inc. may be facing challenges in managing its operating costs or experiencing pressure on pricing and revenues. Further analysis of the company's cost structure and revenue streams would be essential to determine the underlying factors impacting its operating profit margin.
Peer comparison
Dec 31, 2023