Universal Health Services Inc (UHS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,145,590 | 1,011,780 | 1,380,940 | 1,349,530 | 1,216,380 |
| Long-term debt | US$ in thousands | 4,785,780 | 4,726,530 | 4,141,880 | 3,524,250 | 3,896,580 |
| Total stockholders’ equity | US$ in thousands | 6,149,000 | 5,920,580 | 6,089,660 | 6,317,150 | 5,504,100 |
| Return on total capital | 10.48% | 9.50% | 13.50% | 13.71% | 12.94% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,145,590K ÷ ($4,785,780K + $6,149,000K)
= 10.48%
Universal Health Services, Inc. has demonstrated varying levels of return on total capital over the past five years. The return on total capital for the company was 10.63% as of December 31, 2023, showing a slight improvement from the previous year's 9.35%. However, this figure is lower compared to the higher returns achieved in 2021 (13.26%), 2020 (13.35%), and 2019 (12.81%).
It is important to note that fluctuations in return on total capital can be influenced by a variety of factors such as changes in operating efficiency, financial leverage, and overall profitability. Universal Health Services, Inc. may need to evaluate its capital allocation strategies and operational performance to maintain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2023