Universal Health Services Inc (UHS)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,145,590 | 1,011,780 | 1,380,940 | 1,349,530 | 1,216,380 |
| Interest expense | US$ in thousands | 206,674 | 126,889 | 83,672 | 106,285 | 162,733 |
| Interest coverage | 5.54 | 7.97 | 16.50 | 12.70 | 7.47 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,145,590K ÷ $206,674K
= 5.54
Universal Health Services, Inc.'s interest coverage ratio has shown fluctuations over the past five years. The ratio was lowest in 2019 at 7.47 and increased to its peak in 2021 at 16.29 before declining in the following years. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating profits. A higher ratio suggests that the company is more capable of servicing its debt using its earnings. The decreasing trend over the last two years (2022 and 2023) might raise concerns about the company's ability to cover its interest payments with operating income. Further analysis of the company's financial health and profitability trends is recommended to understand the underlying reasons for the fluctuations in the interest coverage ratio.
Peer comparison
Dec 31, 2023