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Universal Health Care Earnings Per Share Ratio

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Another important ratio to consider would be the earnings per share ratio. The earnings per share ratio is the amount of the companies net income that are available for payment to their shareholders of their common stock. Earnings per share ratio is calculated by dividing the company’s profits by the number of outstanding shares. Companies with higher ratios have the ability to pay higher dividends to their shareholders. The higher the ratio also gives the company the ability to reinvest the fund into their business for growth, which proves the higher the ratio, the more worthwhile the invest can be. A review of the company’s EPS trend can help an investor see whether the company is generating and increasing the amount of earning per share, which would be a positive trend. The investor could also see if the trend is declining, which would indicate financial problems with the company . The earnings per share ratio Universal Healthcare services earnings current earnings per share ratio is $5.77 (www.NASDAQ.com). UHS reported it’s annual net income as $510.7 million , which made earnings per share 5.14 at the years end of December 2013. The reported earnings per share was an increase compared to the earnings per share at the years end of December 2012, which they had a attributable income …show more content…

Healthcare facilities also deals with a large number of accounts receivables due to the fact that patients are responsible for portions of their bills which are not always paid on time. Health care facilities also have numerous accounts where the patients are fully responsible for the balance, unfortunately a lot of times those accounts do not get paid or take long periods of time before they are paid. Issues like this can easily result in a health care facility having a horrible current ratio, and the inability to pay their current

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