Financial Statement Analysis

Financial Statement Analysis

Introduction

Universal Health Services, when one looks at some of the “for-profit organizations” in the USA is ranked fifth. Though it is fifth as far as the overall volume of the services is concerned, it is a leading hospital that is publicly traded and largest sentence abuse faculty operator. In this report, the trends that are being observed in the business for last three years will be looked at. There are some of vital stats that are needed to be looked at before analyzing or making any judgment call on the state of finances of the company at the moment.

Discussion

Revenue

First that will be discussed and will be brought into the consideration is that there will be thorough analysis of the revenue of the Universal Health Services. The revenue for this quarter is said to be around $ 2.08 billion and this is one encouraging sing as analysts and the industry insiders were expecting revenue of just about $ 2.05 billion. So this is a step that seems to be in a right direction as far as revenues are concerned (Lu et al, 2003).

Gross Margin

The revenue itself is not the sole indicator of the way Universal Health Services is been performing, there are some other things as well that are needed to be looked at, and one of them is the value of the gross margin (Lu et al, 2003). With the margin being 40% this year, the trend that can be observed from last three years has been pretty encouraging as this year it has been 120 basis points above the previous year, while even the previous year, the margin was 320 basis points above the preceding quarter.

So last three years from the revenue and the gross margins are telling a pretty ...