Universal Health Services Inc (UHS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,145,588 | 1,084,793 | 1,087,795 | 1,052,945 | 1,011,776 | 1,072,281 | 1,103,478 | 1,310,636 | 1,380,943 | 1,473,003 | 1,510,964 | 1,419,675 | 1,349,531 | 1,283,776 | 1,114,592 | 1,108,386 | 1,216,381 | 1,100,675 | 1,190,271 | 1,175,032 |
| Interest expense (ttm) | US$ in thousands | 206,674 | 196,972 | 179,247 | 156,092 | 126,889 | 102,219 | 87,765 | 83,388 | 83,672 | 84,341 | 87,717 | 91,891 | 106,285 | 125,558 | 142,430 | 159,444 | 162,733 | 163,448 | 161,507 | 157,020 |
| Interest coverage | 5.54 | 5.51 | 6.07 | 6.75 | 7.97 | 10.49 | 12.57 | 15.72 | 16.50 | 17.46 | 17.23 | 15.45 | 12.70 | 10.22 | 7.83 | 6.95 | 7.47 | 6.73 | 7.37 | 7.48 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,145,588K ÷ $206,674K
= 5.54
Based on the data provided for Universal Health Services, Inc., the interest coverage ratio has been consistently declining over the past eight quarters. This suggests that the company's ability to cover its interest expenses with its earnings has gradually decreased.
The interest coverage ratio peaked at 15.59 in Q1 2022 and has since been on a downward trend, indicating a potential strain on Universal Health Services' ability to meet its interest obligations.
While the interest coverage ratio remains above 1, indicating that the company is generating enough operating income to cover its interest expenses, the decreasing trend raises concerns about the company's financial health and ability to effectively manage its debt.
It is important for stakeholders to closely monitor Universal Health Services, Inc.'s interest coverage ratio and assess the company's overall financial performance and debt management strategies.
Peer comparison
Dec 31, 2023