Universal Health Services Inc (UHS)
Debt-to-equity 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-equity ratio | 0.78 | 0.80 | 0.68 | 0.56 | 0.71 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,785,780K ÷ $6,149,000K
= 0.78
The debt-to-equity ratio of Universal Health Services, Inc. has shown some fluctuations over the past five years, indicating changes in the company's capital structure. The ratio increased from 0.72 in 2019 to 0.81 in 2022 before decreasing to 0.80 in 2023.
A debt-to-equity ratio of 0.80 in 2023 suggests that the company is financing a larger portion of its assets through debt compared to equity. This may indicate a moderate level of financial leverage, which could be a concern for investors and creditors as higher debt levels can increase financial risk.
The trend over the years indicates that Universal Health Services, Inc. has been relying more on debt as a source of financing relative to equity, which could potentially lead to higher interest expenses and financial obligations. It is important for the company to carefully manage its debt levels to ensure financial stability and solvency in the long run.
Peer comparison
Dec 31, 2023