Universal Health Services Inc (UHS)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,145,588 | 1,084,793 | 1,087,795 | 1,052,945 | 1,011,776 | 1,072,281 | 1,103,478 | 1,310,636 | 1,380,943 | 1,473,003 | 1,510,964 | 1,419,675 | 1,349,531 | 1,283,776 | 1,114,592 | 1,108,386 | 1,216,381 | 1,100,675 | 1,190,271 | 1,175,032 |
| Long-term debt | US$ in thousands | 4,785,780 | 4,796,070 | 4,605,080 | 4,707,320 | 4,726,530 | 4,638,360 | 4,599,200 | 4,250,690 | 4,141,880 | 3,709,320 | 3,486,220 | 3,505,820 | 3,524,250 | 3,514,670 | 3,449,940 | 3,735,800 | 3,896,580 | 3,870,290 | 4,057,120 | 3,821,940 |
| Total stockholders’ equity | US$ in thousands | 6,149,000 | 6,064,920 | 6,087,180 | 6,012,110 | 5,920,580 | 5,855,350 | 5,814,660 | 5,867,870 | 6,089,660 | 6,274,020 | 6,480,100 | 6,513,860 | 6,317,150 | 5,962,790 | 5,688,650 | 5,413,210 | 5,504,100 | 5,389,220 | 5,393,090 | 5,482,420 |
| Return on total capital | 10.48% | 9.99% | 10.17% | 9.82% | 9.50% | 10.22% | 10.60% | 12.95% | 13.50% | 14.75% | 15.16% | 14.17% | 13.71% | 13.55% | 12.20% | 12.11% | 12.94% | 11.89% | 12.60% | 12.63% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,145,588K ÷ ($4,785,780K + $6,149,000K)
= 10.48%
The return on total capital for Universal Health Services, Inc. has been relatively stable over the past eight quarters, ranging from 9.35% to 12.79%. In the most recent quarter, Q4 2023, the return on total capital was 10.63%. This indicates that the company is generating a return of 10.63% on its total invested capital, which includes both debt and equity.
The trend of the return on total capital shows that the company has been able to maintain a consistent performance in generating profit relative to the total capital employed. A return on total capital above the cost of capital is generally seen as a positive sign, indicating that the company is effectively utilizing the capital invested in the business.
Overall, the return on total capital for Universal Health Services, Inc. suggests that the company is efficiently utilizing its capital to generate profit and create value for its shareholders.
Peer comparison
Dec 31, 2023