Universal Health Service Ratio Analysis
Financial ratios are very important tools that users of the financial statements can utilize to assess an organizations financial health. This paper thoroughly analyzes the performance of the Universal Health Services and assesses the its current financial health. In this regard, key financial ratio will be suggested which can be utilized to assess the Universal Health Services financial condition. Universal Health Services ability to meet both its short as well as long-term financial obligations will be thoroughly evaluated in order to determine how these may influence its future performance. The paper also discusses the Universal Health Services current profitability trends to determine the company’s strategic heading. In conclusion, the
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In order for Universal Health Services to operate sustainable business, effective planning and financial management is very critical which can be effectively done with the help of ratio analysis. Ratio analysis can be very effective tool for the company’s managers to pinpoint the strengths and weaknesses of the Universal Health Services, from which strategies and initiatives can be formed. From an investor's perspective the ratio analysis can be very helpful in predicting the future profitability and viability of a Universal Health Services which facilitates strategic investment decision …show more content…
The liquidity measure is very useful in case of Universal Health Services because most of the company’s revenue is tied to long-term insurance tie-ups and hugely dependent on medical billing. There is a great time lag between when the healthcare service is delivered and when the medical bills are actually get paid. While the medical bills take a while to get cleared, the costs associated with the patient care are very near to cash which fuel the liquidity problems. So most of the financial analysts will closely evaluate the Universal Health Service’s liquidity position as it enables them to spot any issues with the Universal Health Service’s operations very
In order for Universal Health Services to operate sustainable business, effective planning and financial management is very critical which can be effectively done with the help of ratio analysis. Ratio analysis can be very effective tool for the company’s managers to pinpoint the strengths and weaknesses of the Universal Health Services, from which strategies and initiatives can be formed. From an investor's perspective the ratio analysis can be very helpful in predicting the future profitability and viability of a Universal Health Services which facilitates strategic investment decision …show more content…
The liquidity measure is very useful in case of Universal Health Services because most of the company’s revenue is tied to long-term insurance tie-ups and hugely dependent on medical billing. There is a great time lag between when the healthcare service is delivered and when the medical bills are actually get paid. While the medical bills take a while to get cleared, the costs associated with the patient care are very near to cash which fuel the liquidity problems. So most of the financial analysts will closely evaluate the Universal Health Service’s liquidity position as it enables them to spot any issues with the Universal Health Service’s operations very