HCA Holdings Inc (HCA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 41,925,000 | 55,341,000 | 9,371,000 | 9,481,000 | 8,369,000 |
| Inventory | US$ in thousands | 1,738,000 | 2,021,000 | 2,068,000 | 1,986,000 | 2,025,000 |
| Inventory turnover | 24.12 | 27.38 | 4.53 | 4.77 | 4.13 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $41,925,000K ÷ $1,738,000K
= 24.12
Inventory turnover is a crucial metric that measures how efficiently a company manages its inventory. In the case of HCA Holdings Inc, the inventory turnover has shown a fluctuating trend over the past five years.
As of December 31, 2020, the inventory turnover ratio stood at 4.13. This indicates that on average, HCA Holdings Inc sold and replaced its inventory approximately 4.13 times during that year.
By December 31, 2021, the inventory turnover ratio improved to 4.77, suggesting a more efficient management of inventory during that period. However, by December 31, 2022, the ratio dropped slightly to 4.53, indicating a relatively lower turnover rate.
The most significant change was observed by December 31, 2023, where the inventory turnover ratio surged to 27.38. This sharp increase could signal either a sudden spike in sales relative to inventory levels or an improvement in inventory management efficiency.
At the end of December 31, 2024, the inventory turnover ratio was 24.12, indicating that HCA Holdings Inc continued to have a high rate of inventory turnover, although slightly lower than the previous year.
Overall, the inventory turnover ratios for HCA Holdings Inc demonstrate fluctuations over the five-year period, with a notable increase in 2023. Further analysis would be needed to understand the factors driving these changes and to assess the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2024