HCA Holdings Inc (HCA)

Working capital turnover

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
Revenue (ttm) US$ in thousands 64,968,000 63,162,000 61,920,000 60,879,000 60,233,000 59,800,000 60,105,000 59,720,000 58,752,000 59,483,000 57,147,000 53,365,000 51,533,000 50,841,000 49,934,000 51,424,000 51,334,000 48,505,000 47,478,000 46,437,000
Total current assets US$ in thousands 14,927,000 14,294,000 13,888,000 13,541,000 13,643,000 13,481,000 13,937,000 15,006,000 13,542,000 13,248,000 12,475,000 12,036,000 12,333,000 16,266,000 14,031,000 11,016,000 11,196,000 10,769,000 12,869,000 11,108,000
Total current liabilities US$ in thousands 12,655,000 12,407,000 11,545,000 11,028,000 9,902,000 9,784,000 8,999,000 10,518,000 9,582,000 9,624,000 8,615,000 8,642,000 8,704,000 14,379,000 12,856,000 7,019,000 7,757,000 7,124,000 8,961,000 10,531,000
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $64,968,000K ÷ ($14,927,000K – $12,655,000K)
= 28.60

HCA Healthcare Inc's working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital and converting it into revenue.

Based on the data provided, we observe fluctuations in the working capital turnover ratio over the past eight quarters. In Q4 2023, the ratio stands at 28.60, a decrease from Q3 2023's ratio of 33.47. Despite the decline, HCA Healthcare Inc's working capital turnover ratio remains relatively high, indicating efficient utilization of working capital to drive revenue generation.

Comparing the current ratio to the same quarter in the previous year, there is a notable improvement. In Q4 2023, the ratio of 28.60 surpasses Q4 2022's ratio of 16.10 by a significant margin, showcasing enhanced efficiency in capital utilization over the year.

Overall, HCA Healthcare Inc's working capital turnover ratio reflects a positive trend in recent quarters, indicating improved efficiency in converting working capital into revenue.


Peer comparison

Dec 31, 2023

Company name
Symbol
Working capital turnover
HCA Holdings Inc
HCA
28.60
Tenet Healthcare Corporation
THC
8.16
Universal Health Services Inc
UHS
17.64

See also:

HCA Holdings Inc Working Capital Turnover (Quarterly Data)