Universal Health Services Inc (UHS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,681,810 | 1,175,380 | 1,003,560 | 1,363,090 | 1,358,350 |
| Total assets | US$ in thousands | 14,469,700 | 13,967,600 | 13,494,200 | 13,093,500 | 13,476,900 |
| Operating ROA | 11.62% | 8.42% | 7.44% | 10.41% | 10.08% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,681,810K ÷ $14,469,700K
= 11.62%
Universal Health Services Inc's operating return on assets (ROA) has shown some fluctuation over the past five years.
In December 2020, the operating ROA stood at 10.08%, indicating that for every dollar of assets the company had, it generated 10.08 cents in operating income.
By December 2021, there was a slight improvement to 10.41%, suggesting that the company was more efficient in utilizing its assets to generate operating profits.
However, in December 2022, the operating ROA decreased to 7.44%, signaling a decline in profitability relative to its asset base. This could be due to various factors such as increased operating expenses or a decrease in revenue.
The following year, the operating ROA saw a slight recovery to 8.42% by December 2023, but it was still below the levels seen in 2020 and 2021.
By December 2024, there was a more significant improvement in the operating ROA to 11.62%, indicating that the company was able to effectively leverage its assets to generate higher operating returns.
Overall, while the operating ROA of Universal Health Services Inc has shown some variability, it is essential for the company to consistently monitor and improve this metric to ensure efficient asset utilization and sustainable profitability.
Peer comparison
Dec 31, 2024