Universal Health Services Inc (UHS)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,967,600 | 13,873,500 | 13,732,300 | 13,556,000 | 13,494,200 | 13,378,900 | 13,296,100 | 13,144,400 | 13,093,500 | 12,846,900 | 12,812,600 | 13,096,300 | 13,476,900 | 12,975,800 | 12,148,500 | 11,620,400 | 11,668,200 | 11,594,400 | 11,752,600 | 11,721,300 |
| 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 |
| Financial leverage ratio | 2.27 | 2.29 | 2.26 | 2.25 | 2.28 | 2.28 | 2.29 | 2.24 | 2.15 | 2.05 | 1.98 | 2.01 | 2.13 | 2.18 | 2.14 | 2.15 | 2.12 | 2.15 | 2.18 | 2.14 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,967,600K ÷ $6,149,000K
= 2.27
The financial leverage ratio of Universal Health Services, Inc. has shown relatively stable trends over the past eight quarters, ranging from 2.24 to 2.29. A financial leverage ratio above 1 indicates that the company relies on debt financing to support its operations and investments.
With the financial leverage ratio consistently above 2 during the period analyzed, Universal Health Services, Inc. has a higher degree of financial leverage, indicating a significant reliance on debt to fund its activities compared to equity. While higher leverage can amplify returns in good times, it also increases financial risk, as the company may face challenges in meeting its debt obligations during economic downturns or adverse business conditions.
Investors and creditors should closely monitor the company's financial leverage ratio over time to assess its ability to manage debt effectively and maintain financial stability in different market environments. Additionally, a high financial leverage ratio may impact the company's creditworthiness and borrowing costs, potentially influencing its overall financial health and performance.
Peer comparison
Dec 31, 2023