FINANCIAL ANALYSIS: UNIVRESAL HEALTH SERVICES (NYSE: UHS)2
Universal Health Services, Inc is a hospital management company that is among the most
respected and also one of the largest in the United Sates. The company has several acute care
hospitals, behavioral health facilities, and ambulance centers, which are located nationwide in
the United States, in Puerto Rico, and also in United States Virgin Islands. The company’s
headquarters is located in Pennsylvania. In this paper, the main focus will be a financial analysis
of Universal Health Service Company. The financial analysis will be based on the financial
statements of three consecutive financial years. These include the financial years of 2009, 2010,
and finally 2011. This analysis will aid the investors in the determination of the ability to invest
in the company. It will also be helpful for the employees for assurance of job security. In the case
of the shareholders, the financial analysis will be very helpful in the determination of the
company’s return on their capital.
The first aspect of analysis of the company will focus on the total revenues of the
company. From the financial statements of the three financial years, there was a general increase
in the company’s total revenue. During the financial year of 2009, the company made total
revenue of $4,693.8 million. During the following financial year, the year ending December
2010, the company realized total revenue of $4,900.0 million. In the final year of analysis, the
financial year ending 31 Dec, 2011, the total revenue of the company was $6,760.2 million. The
overall implication of the above data is a clear indication that shows that the company’s total
revenue progressively increased during the three financial years.
The second aspect of analysis is the gross profit of the company. In the case of the
company’s gross profit, a regular trend of gross profit increased was recorded. In the first
financial year of 2009, the company’s gross profit recorded was $1,790.1 million. In the second