HCA Holdings Inc (HCA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 64,968,000 | 60,233,000 | 58,752,000 | 51,533,000 | 51,336,000 |
| Receivables | US$ in thousands | 9,958,000 | 8,891,000 | 8,095,000 | 7,051,000 | 7,380,000 |
| Receivables turnover | 6.52 | 6.77 | 7.26 | 7.31 | 6.96 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $64,968,000K ÷ $9,958,000K
= 6.52
The receivables turnover ratio measures how efficiently a company is able to collect on its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Analyzing the trend of HCA Healthcare Inc's receivables turnover ratio over the past five years, we observe a generally decreasing trend from 6.96 in 2019 to 6.52 in 2023. This indicates a slight decline in the efficiency of HCA Healthcare Inc in collecting its accounts receivable.
Although the ratio has fluctuated over the years, it remained relatively stable between 2020 and 2021, before declining in the most recent year. This decline suggests that HCA Healthcare Inc may be taking longer to collect payments from its customers, which could potentially impact its cash flow and working capital management.
Further investigation into the reasons behind this trend, such as changes in credit policies, customer payment behavior, or overall industry conditions, would be required to fully understand the underlying factors affecting HCA Healthcare Inc's receivables turnover.
Peer comparison
Dec 31, 2023