HCA Holdings Inc (HCA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 24.12 | 27.38 | 4.53 | 4.77 | 4.13 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 57.08 | 28.60 | 16.10 | 14.84 | 14.20 |
The activity ratios of HCA Holdings Inc provide insights into its operational efficiency and management of working capital.
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently HCA is managing its inventory. The trend indicates a consistent performance with slight fluctuations over the years, ranging from 4.13 to 27.38.
- A higher ratio in 2023 and 2024 suggests a significant improvement in inventory turnover, possibly due to better inventory management or increased demand for its services.
2. Receivables Turnover:
- The absence of data for receivables turnover might indicate that the company operates in a way where it doesn't need to extend credit terms to its customers, or it could be due to the nature of its business where receivables are negligible.
3. Payables Turnover:
- Similarly, the lack of data for payables turnover implies that HCA may not heavily rely on trade credit from suppliers or has a different payment structure in place.
4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently HCA is utilizing its working capital to generate revenue. The ratio has shown an increasing trend from 14.20 in 2020 to 57.08 in 2024.
- The substantial increase in 2023 and 2024 indicates that HCA has been able to generate significantly higher revenue relative to its working capital, reflecting strong operational efficiency and effective management of working capital resources.
In conclusion, HCA Holdings Inc demonstrates strong inventory turnover and working capital turnover ratios, reflecting efficient operational management. However, the lack of data for receivables and payables turnovers limits a comprehensive assessment of its complete activity cycle.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.13 | 13.33 | 80.55 | 76.46 | 88.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for HCA Holdings Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand indicate how efficiently the company manages its inventory. A lower number of days implies that the company is selling its inventory quickly, which is generally favorable.
- HCA Holdings Inc's DOH has been decreasing over the years, from 88.32 days in 2020 to 15.13 days in 2024. This indicates an improvement in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect its accounts receivable. A lower DSO is preferable as it indicates faster collection of sales.
- The data provided does not include DSO figures for any of the years, which limits our ability to assess the efficiency of HCA Holdings Inc in collecting receivables.
3. Number of Days of Payables:
- The number of days of payables represents the average number of days a company takes to pay its suppliers. A higher number of days implies that the company is taking longer to pay its bills.
- Similar to DSO, the data does not provide information on the number of days of payables for any of the years, making it challenging to evaluate HCA Holdings Inc's payment practices.
In summary, HCA Holdings Inc has demonstrated an improvement in its inventory management efficiency over the years based on the decreasing trend in days of inventory on hand. However, without data on days of sales outstanding and number of days of payables, a complete assessment of the company's overall activity ratios is not possible. It would be beneficial to have complete information on all activity ratios to gain a comprehensive understanding of HCA Holdings Inc's operational efficiency.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.18 | 2.24 | 2.22 |
| Total asset turnover | 1.19 | 1.16 | 1.15 | 1.16 | 1.09 |
Based on the provided data, the analysis of long-term activity ratios for HCA Holdings Inc is as follows:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue.
- For HCA Holdings Inc, the fixed asset turnover ratio has been relatively stable over the years, ranging from 2.18 to 2.24.
- The slight fluctuations in the fixed asset turnover indicate that the company has been effectively using its fixed assets to generate revenue.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company utilizes all its assets to generate sales.
- HCA Holdings Inc has shown an increasing trend in total asset turnover, with the ratio increasing from 1.09 in 2020 to 1.19 in 2024.
- This improvement suggests that the company has been more efficient in utilizing its total assets to generate revenue over the years.
In summary, HCA Holdings Inc has maintained a stable performance in utilizing its fixed assets to generate revenue, while showing an increasing efficiency in utilizing its total assets to drive sales.