Universal Health Services, Inc. — Earnings Quality Grade F
UHS · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 55 days, change +4 days YoY
AR growth 19.5% exceeds revenue growth 9.7%
Revenue 9.7%, CFFO -9.8%. Cash follows revenue
Expense Quality
Inventory 5.1% vs COGS 4.5%. Normal
CapEx growth 10.2% vs revenue 9.7%. Normal
SG&A/Gross Profit = 52.4%. Normal
Gross margin 90.4%, change +0.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.25. Profits backed by cash
FCF $0.8B, FCF/NI = 0.55
Accruals ratio = -2.4%. Low accruals
Cash $0.1B covers only 3% of debt $5.2B
Balance Sheet Health
Goodwill+Intangibles $4.0B = 55% of equity. Over 50%
Debt/EBITDA = 1.9x. Healthy
Other assets 10.9% vs revenue 9.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.45 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09