HCA Holdings Inc (HCA)
Working capital 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 |
| Total current assets | US$ in thousands | 14,927,000 | 13,643,000 | 13,542,000 | 12,333,000 | 11,196,000 |
| Total current liabilities | US$ in thousands | 12,655,000 | 9,902,000 | 9,582,000 | 8,704,000 | 7,757,000 |
| Working capital turnover | 28.60 | 16.10 | 14.84 | 14.20 | 14.93 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $64,968,000K ÷ ($14,927,000K – $12,655,000K)
= 28.60
The working capital turnover ratio for HCA Healthcare Inc has shown an increasing trend over the past five years. In 2019, the ratio was 14.93, which indicates that the company generated $14.93 in revenue for every dollar of working capital invested. Subsequently, the ratio increased to 14.20 in 2020, 14.84 in 2021, 16.10 in 2022, and further to 28.60 in 2023.
This indicates that the company has been more efficient in utilizing its working capital to generate revenue in recent years. A higher working capital turnover ratio suggests that the company is able to generate more sales with a lower investment in working capital, which is generally a positive indicator of operational efficiency and effective management of resources. This improvement in efficiency could be attributed to various factors such as better inventory management, improved receivables collection, or more streamlined payables processes. Overall, the increasing trend in working capital turnover ratio for HCA Healthcare Inc reflects positively on its operational performance and financial management in recent years.
Peer comparison
Dec 31, 2023