Universal Health Services (Uhs) - Financial Performance
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Universal Health Services (UHS) - Financial Performance
Universal Health Services (UHS) - Financial Performance
Introduction
Universal Health Services (UHS) works essentially through itself and its subsidiaries in almost all parts of USA. It has one of the largest networks of medical services in USA. It gives various types of services in connection to medicinal. Its system spreads an extensive number of Acute Care and surgical Hospitals, behavioral health focuses, walking surgery focuses and centers of radiation oncology. UHS has its presence principally in USA, but it is additionally running its operations in Puerto Rico. UHS' base camp is in King of Prussia, Pennsylvania and has 65,400 workers up till December 31, 2011. Allen Miller is the Chairman of the Board of Directors and Chief Executive Officer of UHS since 1987.
The organization has its division essentially regarding intense doctor's facilities administrations, behavioral health administration and other identified administrations. UHS has been demonstrating extraordinary potential for development since its commencement in 1978. Both its Revenue and Net benefits have developed all around the years (Market Line Advantage, 2012).
Discussion
Financial and Ratio Analysis
The ratio analysis of the company are as follows, the period covered is from 2009 to 2011.
Profitability Ratios
12/31/2012
12/31/2011
12/31/2010
ROA % (Net)
5.57
5.24
4.01
ROE % (Net)
17.66
18.63
12.34
ROI % (Operating)
15.17
15.15
11.75
Liquidity Ratios
12/31/2012
12/31/2011
12/31/2010
Quick Ratio
1.21
1.2
1.04
Current Ratio
1.57
1.63
1.61
Net Current Assets % TA
6.26
6.89
6.71
Debt Management
12/31/2012
12/31/2011
12/31/2010
LT Debt to Equity
1.37
1.59
1.98
Total Debt to Equity
1.37
1.59
1.98
Interest Coverage
5.27
4.47
6.52
Asset Management
12/31/2012
12/31/2011
12/31/2010
Total Asset Turnover
0.88
0.99
0.97
Receivables Turnover
6.82
8.3
7.73
Inventory Turnover
70.92
78.49
62.35
Per Share
12/31/2012
12/31/2011
12/31/2010
Cash Flow per Share
8.4
7.39
5.18
Book Value per Share
27.8
23.77
20.31
Profitability
The return on Assets (ROA) which indicates how proficiently and viably the organization has used its Assets in creating its income. Throughout the course of the 3 years in audit, UHS' ROA has not enhanced that, it has just headed off from something like 4% to 5.5%.
The return on Equity (ROE) is one of the ratios that are of much concern to the shareholders, as it shows what amount of the organization has made on the measure that shareholders have contributed through investment.
If the whole 3 years are to be considered, it would be seen that ROA has substantially improved over from 12.34% in 2009 to 17.66% in 2011. However, it can be seen that during the years between 2010 and 2011, the ROA has fallen from 18.63% to 17.66, which would be an alarming sign for the shareholders. The value of their investment has fallen during the last year.
Debt Management
The Debt to Equity proportion has importance for both the shareholders and the banks. It demonstrates the extent of Debt in connection to Equity. It indicates the money related influence (hazard) of the firm. Up till 2011, the proportion has been diminishing which is a great sign for the organization as it is getting less unsafe for UHS. The ratio was just about 2 in 2009 and has diminished to 1.37; this could be because of increment in the shareholder value or because of the lessening of obligation (PwC, 2011).
Interest scope proportion has incredible imperativeness for the banks of the organization. It demonstrates how effortlessly the organization administrations its obligations, at the end of the day interest. The higher the proportion, the more ...