Universal Health Services Inc (UHS)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.44 | 0.44 | 0.40 | 0.36 | 0.41 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,785,780K ÷ ($4,785,780K + $6,149,000K)
= 0.44
The debt-to-capital ratio of Universal Health Services, Inc. has exhibited some fluctuations over the past five years. The ratio has shown an increasing trend from 0.38 in 2020 to 0.45 in 2022, before slightly decreasing to 0.44 in 2023. This indicates that the company's reliance on debt in its capital structure has been growing.
The ratio exceeding 0.40 in each of the past five years suggests that a significant portion of Universal Health Services' capital structure is comprised of debt. This could indicate a higher level of financial leverage and potential risk associated with the company's debt obligations.
Overall, the trend of the debt-to-capital ratio indicates that Universal Health Services has been gradually relying more on debt financing relative to its total capital over the specified period. Investors and analysts may need to closely monitor this ratio to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023