Universal Health Services Inc (UHS)

The solvency ratios of Universal Health Services, Inc. over the five-year period indicate the company's ability to meet its long-term debt obligations and overall financial leverage.

The debt-to-assets ratio has shown fluctuations over the period, ranging from 0.29 to 0.36, with a decreasing trend towards more recent years. This ratio indicates that, on average, approximately 32% to 36% of the company's assets are financed by debt.

The debt-to-capital ratio has also fluctuated, ranging from 0.38 to 0.45, indicating that, on average, 38% to 45% of the company's capital structure is funded by debt.

The debt-to-equity ratio has shown a similar pattern, with values ranging from 0.61 to 0.81. This ratio indicates that, on average, 61% to 81% of the company's total equity is covered by debt.

The financial leverage ratio has shown a relatively stable trend, with values ranging between 2.12 and 2.28 over the five-year period. This ratio reflects the degree to which the company relies on debt financing in its capital structure, with a higher ratio indicating higher financial leverage.

Overall, Universal Health Services, Inc. has maintained a moderate level of leverage and managed to reduce its reliance on debt financing over the years, which can be seen in the decreasing trend in the debt ratios. This suggests improved solvency and financial stability for the company.

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Coverage ratios

Universal Health Services, Inc. interest coverage has shown fluctuations over the past five years. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio is generally favorable as it signifies that the company is more capable of servicing its debt.

In 2023, the interest coverage ratio decreased to 5.69, reflecting a potential decrease in the company's ability to cover its interest payments from its operating income compared to the previous year. Despite this decline, the ratio remains above 1, indicating that the company still generates enough earnings to cover its interest expenses.

Comparing 2023 to 2021, there has been a significant drop in the interest coverage ratio from 16.29 to 5.69. This decline suggests a substantial reduction in the company's ability to cover interest payments, which could be a cause for concern.

Overall, while the interest coverage ratio for Universal Health Services, Inc. has fluctuated over the years, it is important for investors and stakeholders to carefully monitor this metric to assess the company's financial health and ability to meet its debt obligations.