Universal Health Services Inc (UHS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,149,000 | 5,920,580 | 6,089,660 | 6,317,150 | 5,504,100 |
| ROE | 11.67% | 11.41% | 16.28% | 14.94% | 14.80% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $717,795K ÷ $6,149,000K
= 11.67%
Universal Health Services, Inc.'s return on equity (ROE) has shown some variability over the past five years. In 2023, the ROE stands at 11.67%, slightly higher than the previous year's 11.40%. This indicates that for every dollar of shareholder equity, the company generated a return of 11.67% in 2023.
Comparing to 2021, where the ROE was 16.25%, the current ROE seems lower. This suggests a decrease in the company's ability to generate profits using the shareholders' equity. However, the ROE in 2023 is still higher than in 2020 and 2019, indicating that the company has been able to maintain a relatively stable performance in terms of generating returns on equity over the past few years.
Overall, while the current ROE for Universal Health Services, Inc. is not at its highest level, it remains at a reasonable level, indicating that the company is effectively utilizing shareholders' equity to generate profits. It would be important to assess any underlying reasons for the fluctuations in ROE and monitor the company's financial performance in the future.
Peer comparison
Dec 31, 2023