HCA Holdings Inc (HCA)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.08 | 1.18 | 1.38 | 1.41 | 1.42 |
| Quick ratio | 0.13 | 0.08 | 0.13 | 0.16 | 0.22 |
| Cash ratio | 0.13 | 0.08 | 0.13 | 0.16 | 0.22 |
Based on the provided data, HCA Holdings Inc's liquidity ratios show a decreasing trend over the years.
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has decreased from 1.42 in 2020 to 1.08 in 2024. While a current ratio above 1 indicates the company has more current assets than current liabilities, the declining trend may signify a potential difficulty in meeting short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also decreased from 0.22 in 2020 to 0.13 in 2024. This suggests that the company may have difficulty meeting its short-term obligations without relying on inventory.
Similarly, the cash ratio, which is the most conservative liquidity ratio focusing only on cash and cash equivalents, has shown a decline from 0.22 in 2020 to 0.13 in 2024. This indicates that the company's ability to cover its short-term liabilities solely with cash has weakened over the years.
Overall, the decreasing trend in HCA Holdings Inc's liquidity ratios raises concerns about its short-term financial health and ability to meet its immediate obligations. It may indicate a need for the company to closely monitor and manage its liquidity position to ensure financial stability.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 15.13 | 13.33 | 80.55 | 76.46 | 88.32 |
The cash conversion cycle of HCA Holdings Inc has shown fluctuations over the years based on the provided data.
As of December 31, 2020, the cash conversion cycle was 88.32 days, indicating that the company took approximately 88 days to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle had improved to 76.46 days, suggesting that the company managed its working capital more efficiently, reducing the time taken to convert its operating assets into cash.
However, there was a slight increase in the cash conversion cycle by December 31, 2022, to 80.55 days, indicating a potential slowdown in the company's ability to convert its working capital into cash.
The cash conversion cycle saw a significant improvement by December 31, 2023, to 13.33 days, reflecting a sharp increase in efficiency in converting investments into cash.
By December 31, 2024, the cash conversion cycle remained low at 15.13 days, further indicating the company's effectiveness in managing its working capital and swiftly converting it into cash.
Overall, the trend in the cash conversion cycle of HCA Holdings Inc showcases fluctuations over the years, with notable improvements in efficiency in recent periods.