HCA Holdings Inc (HCA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 64,968,000 | 60,233,000 | 58,752,000 | 51,533,000 | 51,336,000 |
| Property, plant and equipment | US$ in thousands | 27,715,000 | 25,575,000 | 24,063,000 | 23,199,000 | 22,715,000 |
| Fixed asset turnover | 2.34 | 2.36 | 2.44 | 2.22 | 2.26 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $64,968,000K ÷ $27,715,000K
= 2.34
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. The ratio is calculated by dividing net sales by average fixed assets. A higher fixed asset turnover ratio generally indicates better efficiency in utilizing fixed assets to generate sales.
Analyzing the fixed asset turnover ratio of HCA Healthcare Inc over the past five years, we observe a fluctuating trend. In 2023, the fixed asset turnover ratio was 2.34, slightly lower than the previous year's ratio of 2.36. This decline may suggest a slight decrease in efficiency in generating revenue from fixed assets in 2023 compared to 2022.
However, when compared to earlier years, the fixed asset turnover ratio in 2023 remains relatively strong. In 2021 and 2019, the company achieved higher ratios of 2.44 and 2.26, respectively. This indicates that HCA Healthcare Inc was more efficient in utilizing its fixed assets to generate sales in those years compared to 2023.
Overall, while the slight decrease in fixed asset turnover from 2022 to 2023 may raise some concerns, HCA Healthcare Inc has historically demonstrated efficient utilization of its fixed assets to generate revenue, as evidenced by the generally strong fixed asset turnover ratios over the past five years.
Peer comparison
Dec 31, 2023