Universal Healthcare Financial Analysis

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Using Financial Ratios to Assess Organizational Performance
Universal Health Services is a trade specialty health care company where it has been publicly held in the United States. Universal Health Services is involved in going to public hospitals. In that respect are several companies owned and operated by acute care hospitals, behavioral health centers, surgical hospitals, and ambulatory surgery center as well as radiation oncology centers. This week the focus is on making a financial plan for the next three (3) years for Universal Health Service Organization. My paper will hit some lights on factors that will planning for the next (3) years like financial ratio, the ability to meet financial obligations, profitability trends, if they are …show more content…
UHS reported a net income of $151.8 meg, or $1.53 a share, up from $107.6 million, or $1.10 a share, a year earlier. Excluding items such as a gain tied to the decrease of liability self-insurance reserves, as well as electronic health record-related shocks, adjusted profit increased to $1.20 a share from $1.12. Revenue grew 6.5 percent, $1.83 billion. Granting to the company’s shareholder report, “Revenue from acute-care hospitals rose 4.9 percent on a same-facility basis as adjusted admissions increased 2 percent. Behavioral health hospitals' same-facility revenue rose 3.2 percent.” Additionally, based on my ratio analysis, profitability trends are favorable. The company’s gross profit margin was 41.60 and the industry standard was 66.30. The gross profit margin is the ratio of gross earnings (gross sales less cost of sales) to sales revenue. It is the percentage by which gross profits exceed production costs. This ratio is a dependable reading of how profitable this company is and how efficiently it uses its resources, fabrics, and confinement. Another profitability ratio that I looked at was EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) because it is an index of a company's financial performance. In fiscal year 2012, EBITDA was $1,251 and. N fiscal year 2011 EBITDA was $1,193. The EBITDA margin for UHS was 19.90 and the industry standard was 16.80. The higher the EBITDA margin, the less operating expenses eat into a company's bottom line, leading to a more profitable procedure. The higher the EBITDA margin, the less operating expenses eat into a company's bottom line, leading to a more profitable
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