Universal Health Services Inc (UHS)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,686,584 | 1,542,549 | 1,441,713 | 1,285,443 | 1,175,381 | 1,163,119 | 1,153,642 | 1,106,948 | 1,061,105 | 1,087,042 | 1,125,970 | 1,331,504 | 1,394,316 | 1,464,404 | 1,499,266 | 1,418,329 | 1,359,354 | 1,383,005 | 1,222,264 | 1,209,796 |
| Interest expense (ttm) | US$ in thousands | 183,400 | 205,564 | 214,282 | 215,119 | 214,110 | 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 |
| Interest coverage | 9.20 | 7.50 | 6.73 | 5.98 | 5.49 | 5.90 | 6.44 | 7.09 | 8.36 | 10.63 | 12.83 | 15.97 | 16.66 | 17.36 | 17.09 | 15.43 | 12.79 | 11.01 | 8.58 | 7.59 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,686,584K ÷ $183,400K
= 9.20
The interest coverage ratio for Universal Health Services Inc has shown a generally positive trend over the past few years. Starting at 7.59 in March 2020, the ratio improved steadily, reaching its peak at 17.36 in September 2021. This indicates that the company was comfortably able to cover its interest expenses with its operating income during this period.
However, from March 2022 onwards, there was a slight decline in the interest coverage ratio, dropping to 5.49 by December 2023. This suggests a potential strain on the company's ability to cover its interest obligations from its earnings during this period.
The ratio showed some recovery in the following years, stabilizing around 7.50 by September 2024. Despite the fluctuations, it is important for investors and stakeholders to monitor trends in the interest coverage ratio to assess Universal Health Services Inc's ability to meet its interest payments and manage its debt effectively.
Peer comparison
Dec 31, 2024