HCA Holdings Inc (HCA)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	14.84	14.53	14.08	13.62	13.67	14.02	13.88	13.97	13.77	13.20	12.67	11.88	12.05	12.34	13.05	12.53	12.97	13.19	12.43	12.45
Receivables turnover	6.52	6.88	7.11	7.03	6.77	6.99	6.97	7.01	7.26	7.05	7.48	7.19	7.31	7.90	8.13	7.46	6.96	6.80	6.58	6.26
Payables turnover	7.08	7.13	7.55	7.53	6.67	6.77	7.58	6.98	6.65	7.09	7.27	6.97	6.90	7.36	8.31	8.90	8.26	8.94	8.70	8.22
Working capital turnover	28.60	33.47	26.43	24.23	16.10	16.18	12.17	13.31	14.84	16.41	14.80	15.72	14.20	26.94	42.50	12.87	14.93	13.31	12.15	80.48

The analysis of HCA Healthcare Inc's activity ratios reveals the following trends:

1. Inventory Turnover: The inventory turnover ratio for HCA Healthcare Inc has consistently been reported as 0.00 over the past eight quarters. This indicates that the company either has a very low level of inventory or the data has not been accurately recorded. Further investigation may be required to understand the reasons behind this low or missing figure.

2. Receivables Turnover: The receivables turnover ratio shows a relatively stable trend over the quarters, ranging from 6.52 to 7.11. This indicates that the company is efficient in collecting its accounts receivable, with an average collection period ranging from approximately 51 to 56 days. The consistency in this ratio suggests effective credit and collection policies in place.

3. Payables Turnover: Similar to the inventory turnover ratio, the payables turnover for HCA Healthcare Inc has consistently been reported as 0.00 across all quarters. This may indicate that the company quickly pays off its suppliers or that the data may be missing or inaccurate. Further investigation is needed to understand the reasons behind this low or missing figure.

4. Working Capital Turnover: The working capital turnover ratio has shown an increasing trend over the quarters, from 12.17 in Q2 2022 to 33.47 in Q3 2023. This indicates that the company is generating more revenue per dollar of working capital employed. A higher turnover ratio signifies efficient utilization of working capital resources to generate sales.

Overall, while HCA Healthcare Inc demonstrates efficiency in managing its accounts receivable and working capital turnover, further analysis and clarification may be necessary to understand the inventory and payables turnover ratios, which have consistently been reported as 0.00.

Average number of days

		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
Days of inventory on hand (DOH)	days	24.60	25.11	25.93	26.80	26.70	26.03	26.29	26.12	26.51	27.66	28.82	30.72	30.30	29.58	27.96	29.13	28.14	27.67	29.35	29.32
Days of sales outstanding (DSO)	days	55.95	53.06	51.36	51.90	53.88	52.20	52.40	52.07	50.29	51.75	48.77	50.78	49.94	46.18	44.87	48.90	52.47	53.66	55.50	58.32
Number of days of payables	days	51.53	51.21	48.36	48.45	54.73	53.92	48.16	52.30	54.89	51.50	50.20	52.35	52.89	49.60	43.94	41.02	44.21	40.83	41.94	44.41

Based on the provided data for HCA Healthcare Inc's activity ratios, we can see that there is no information available for the days of inventory on hand (DOH) and the number of days of payables for each quarter.

However, focusing on the Days of Sales Outstanding (DSO), which measures how long it takes for the company to collect revenue after a sale is made, we observe a slight fluctuation in the values over the past eight quarters. The DSO has been ranging between 51.36 days and 55.95 days in Q1 2023 and Q4 2023, respectively. Despite these fluctuations, the DSO for HCA Healthcare Inc has generally remained within a moderate range, indicating a stable collection efficiency in converting sales into cash.

Overall, the analysis of activity ratios points towards a consistent performance, with the company efficiently managing its sales collection processes, as evident from the stable trend observed in the Days of Sales Outstanding over the analyzed periods.

Long-term

	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
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
Total asset turnover	1.16	1.16	1.16	1.15	1.15	1.16	1.17	1.14	1.16	1.20	1.19	1.13	1.09	1.00	1.03	1.13	1.14	1.10	1.04	1.07

HCA Healthcare Inc's long-term activity ratios provide insight into the efficiency of the company in utilizing its fixed assets and total assets to generate revenue.

The fixed asset turnover ratio remained relatively stable over the past eight quarters, fluctuating between 2.32 and 2.46. This ratio indicates that for each dollar invested in fixed assets, the company generated between $2.32 and $2.46 in revenue. The consistency of this ratio suggests that HCA Healthcare Inc has been effectively utilizing its fixed assets to drive revenue generation over the long term.

On the other hand, the total asset turnover ratio shows a slight fluctuation from 1.14 to 1.17 over the same period. This ratio reflects how efficiently the company is using all of its assets to generate sales. A total asset turnover ratio of around 1.16 indicates that for every dollar in total assets, the company is generating approximately $1.16 in revenue. Although there has been some variability in this ratio, it has generally remained stable, suggesting that HCA Healthcare Inc has been maintaining a consistent level of efficiency in utilizing its total assets for revenue generation.

Overall, the analysis of HCA Healthcare Inc's long-term activity ratios reveals that the company has been effectively managing and utilizing its assets to drive revenue growth consistently over the quarters, both in terms of fixed assets and total assets. This indicates efficient operational performance and asset utilization within the organization.