HCA Holdings Inc (HCA)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 34,990,000 | 34,781,000 | 34,541,000 | 22,258,000 | 9,902,000 | 9,747,000 | 9,650,000 | 9,473,000 | 9,371,000 | 9,356,000 | 9,499,000 | 9,578,000 | 9,481,000 | 9,437,000 | 9,102,000 | 8,470,000 | 8,369,000 | 8,231,000 | 8,193,000 | 8,563,000 |
| Inventory | US$ in thousands | 1,738,000 | 1,776,000 | 1,800,000 | 1,903,000 | 2,021,000 | 2,030,000 | 2,050,000 | 2,085,000 | 2,068,000 | 2,009,000 | 2,043,000 | 2,003,000 | 1,986,000 | 2,019,000 | 2,027,000 | 2,068,000 | 2,025,000 | 1,950,000 | 1,834,000 | 1,953,000 |
| Inventory turnover | 20.13 | 19.58 | 19.19 | 11.70 | 4.90 | 4.80 | 4.71 | 4.54 | 4.53 | 4.66 | 4.65 | 4.78 | 4.77 | 4.67 | 4.49 | 4.10 | 4.13 | 4.22 | 4.47 | 4.38 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $34,990,000K ÷ $1,738,000K
= 20.13
The inventory turnover ratio for HCA Holdings Inc has shown variations over the past few years. The ratio has generally been within the range of 4 to 5, indicating that the company is efficiently managing its inventory levels and converting its inventory into sales multiple times within a year.
However, there was a significant increase in the inventory turnover ratio in the later part of 2023 and continued to rise sharply in 2024. This sudden increase could be a signal of either a more efficient inventory management system or a decreased inventory level relative to sales.
The notable spike in the inventory turnover ratio to 11.70 in March 31, 2024, followed by a substantial increase to 20.13 by December 31, 2024, may suggest a rapid movement of inventory or a possible reduction in the average inventory balance compared to the sales level.
This uptrend in inventory turnover could be due to various reasons such as better demand forecasting, effective inventory control measures, or improved supply chain management. However, such a high inventory turnover ratio may also raise concerns about stockouts, potential shortages, or pricing strategies.
Further assessment and comparison with industry benchmarks or historical trends can provide deeper insights into the efficiency of HCA Holdings Inc's inventory management and its impact on the overall operational performance and profitability of the company.
Peer comparison
Dec 31, 2024
Dec 31, 2024