Universal Health Services Inc (UHS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,142,100 | 717,795 | 675,609 | 991,590 | 943,953 |
| Total stockholders’ equity | US$ in thousands | 6,749,520 | 6,149,000 | 5,920,580 | 6,089,660 | 6,317,150 |
| ROE | 16.92% | 11.67% | 11.41% | 16.28% | 14.94% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,142,100K ÷ $6,749,520K
= 16.92%
Based on the provided data, the return on equity (ROE) of Universal Health Services Inc has shown fluctuations over the years. The ROE was 14.94% as of December 31, 2020, and increased to 16.28% by December 31, 2021. However, there was a slight decline in ROE to 11.41% by December 31, 2022, followed by a marginal increase to 11.67% as of December 31, 2023. The ROE then significantly improved to 16.92% by December 31, 2024.
The increasing trend in ROE from 2020 to 2021 and then again in 2024 indicates that Universal Health Services Inc has become more efficient in generating profits from shareholders' equity. However, the decline in ROE in 2022 and 2023 may raise concerns about the company's ability to utilize shareholder equity effectively during those periods.
Overall, Universal Health Services Inc's ROE performance demonstrates a mix of positive and negative trends, and further analysis of the company's financial and operational strategies may be required to understand the driving factors behind these fluctuations.
Peer comparison
Dec 31, 2024