Universal Health Services Inc (UHS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,680,450 | 1,147,670 | 1,061,100 | 1,394,320 | 1,359,720 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,749,520 | 6,149,000 | 5,920,580 | 6,089,660 | 6,317,150 |
| Return on total capital | 24.90% | 18.66% | 17.92% | 22.90% | 21.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,680,450K ÷ ($—K + $6,749,520K)
= 24.90%
Universal Health Services Inc has shown a generally positive trend in its return on total capital over the past five years. The return on total capital increased from 21.52% in December 2020 to 24.90% in December 2024, reflecting an improvement in the company's ability to generate profits from its total invested capital. Despite a slight dip in the return on total capital in 2022 and 2023, the company managed to maintain a relatively strong performance above 17%. This upward trend demonstrates efficiency in utilizing both debt and equity in generating returns for its shareholders and creditors. Overall, the increasing return on total capital indicates effective capital management and potential for sustained profitability for Universal Health Services Inc.
Peer comparison
Dec 31, 2024