HCA Holdings Inc (HCA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 29,986,000 | 28,270,000 | 27,339,000 | 24,396,000 | 24,023,000 |
| Inventory | US$ in thousands | 2,021,000 | 2,068,000 | 1,986,000 | 2,025,000 | 1,849,000 |
| Inventory turnover | 14.84 | 13.67 | 13.77 | 12.05 | 12.99 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $29,986,000K ÷ $2,021,000K
= 14.84
Based on the provided data, HCA Healthcare Inc has reported inventory turnover ratios of 0.00 for the years ending December 31, 2019 to December 31, 2023. A low or zero inventory turnover ratio typically indicates that the company may be carrying excess inventory relative to its sales levels. This can lead to potential issues such as storage costs, obsolescence risk, and reduced cash flow efficiency. In the case of HCA Healthcare Inc, further analysis is needed to understand the reasons behind consistently low inventory turnover and assess its implications on the company's operations and financial performance.
Peer comparison
Dec 31, 2023