Universal Health Services Inc (UHS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.14 | 2.27 | 2.28 | 2.15 | 2.13 |
Universal Health Services Inc has consistently maintained a strong solvency position over the past five years, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which remain at 0.00 across the years. This indicates that the company has minimal debt relative to its assets, capital, and equity, reflecting a conservative financial structure.
Furthermore, the financial leverage ratio, which measures the company's reliance on debt financing, has been relatively stable ranging from 2.13 in 2020 to 2.28 in 2022 before decreasing to 2.14 in 2024. This suggests that while the company has some level of financial leverage, it has been managed prudently and has not significantly increased over the years.
Overall, Universal Health Services Inc's solvency ratios indicate a healthy financial position with low debt levels and a balanced mix of equity and debt in its capital structure. This stability in solvency metrics suggests that the company is well-equipped to meet its financial obligations and sustain its operations effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.03 | 5.54 | 8.36 | 16.66 | 12.79 |
Universal Health Services Inc interest coverage ratio has shown fluctuations over the past few years. In December 2020, the interest coverage ratio was 12.79, indicating that the company's operating income was 12.79 times greater than its interest expenses for that period.
By December 2021, the interest coverage ratio improved to 16.66, suggesting a stronger ability to meet interest obligations from operating income. However, in December 2022, the ratio decreased to 8.36, which may raise concerns about the company's ability to cover interest expenses comfortably.
Further, in December 2023, the interest coverage ratio dropped to 5.54, indicating a potential strain on the company's ability to cover interest payments with its earnings. However, by December 2024, the ratio improved to 9.03, although it remains below the levels seen in previous years.
Overall, the fluctuation in Universal Health Services Inc's interest coverage ratio highlights the importance of monitoring the company's ability to generate sufficient earnings to cover its interest expenses and the potential impact on its financial health and ability to meet its debt obligations in the future.