Universal Health Services Inc (UHS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 717,795 | 675,609 | 991,590 | 943,953 | 814,854 |
| Total assets | US$ in thousands | 13,967,600 | 13,494,200 | 13,093,500 | 13,476,900 | 11,668,200 |
| ROA | 5.14% | 5.01% | 7.57% | 7.00% | 6.98% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $717,795K ÷ $13,967,600K
= 5.14%
Universal Health Services, Inc.'s return on assets (ROA) has shown a decreasing trend over the past five years. In 2021, the ROA was at its highest at 7.56%, indicative of the company's ability to generate profits relative to its assets. However, in subsequent years, the ROA slightly declined to 6.98% in 2020 and remained relatively stable at around 5% in 2022 and 2023.
This downward trend suggests that the company may be experiencing challenges in efficiently utilizing its assets to generate profits. Investors and stakeholders may want to further investigate the reasons behind this decline in ROA to assess the company's operational efficiency and profitability prospects.
Peer comparison
Dec 31, 2023