HCA Holdings Inc (HCA)

Fixed asset turnover

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenue (ttm) US$ in thousands 64,968,000 63,162,000 61,920,000 60,879,000 60,233,000 59,800,000 60,105,000 59,720,000 58,752,000 59,483,000 57,147,000 53,365,000 51,533,000 50,841,000 49,934,000 51,424,000 51,334,000 48,505,000 47,478,000 46,437,000
Property, plant and equipment US$ in thousands 27,715,000 27,117,000 26,644,000 26,053,000 25,575,000 24,978,000 24,587,000 24,228,000 24,063,000 23,547,000 23,471,000 23,188,000 23,199,000 22,941,000 23,071,000 22,985,000 22,715,000 22,002,000 21,467,000 21,128,000
Fixed asset turnover 2.34 2.33 2.32 2.34 2.36 2.39 2.44 2.46 2.44 2.53 2.43 2.30 2.22 2.22 2.16 2.24 2.26 2.20 2.21 2.20

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $64,968,000K ÷ $27,715,000K
= 2.34

The fixed asset turnover ratio for HCA Healthcare Inc has shown relatively consistent performance over the past eight quarters, ranging between 2.32 to 2.46. This ratio indicates that, on average, the company generated $2.32 to $2.46 in revenue for every dollar invested in fixed assets during the respective quarters.

The slight fluctuations in the ratio suggest that the company is effectively utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio is generally preferred as it signifies efficient asset utilization. However, the variations between 2.32 and 2.46 are not significant enough to raise concerns about inefficiency.

Overall, HCA Healthcare Inc appears to be managing its fixed assets efficiently and effectively to generate revenue consistently. It is important for the company to maintain this trend to support its financial performance and long-term sustainability.


Peer comparison

Dec 31, 2023

Company name
Symbol
Fixed asset turnover
HCA Holdings Inc
HCA
2.34
Tenet Healthcare Corporation
THC
3.28
Universal Health Services Inc
UHS
2.30

See also:

HCA Holdings Inc Net Fixed Asset Turnover (Quarterly Data)