HCA Holdings Inc (HCA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.13 | 13.33 | 80.55 | 76.46 | 88.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 15.13 | 13.33 | 80.55 | 76.46 | 88.32 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.13 + — – —
= 15.13
The cash conversion cycle of HCA Holdings Inc has shown fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle stood at 88.32 days, indicating that it took the company that long to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle improved to 76.46 days, suggesting more efficient management of working capital. However, this metric slightly increased to 80.55 days by December 31, 2022, indicating a potential slowdown in converting investments into cash.
Remarkably, by December 31, 2023, the cash conversion cycle experienced a significant decrease to 13.33 days, reflecting a substantial improvement in HCA Holdings Inc's ability to efficiently convert its assets into cash. Furthermore, as of December 31, 2024, the cycle further decreased to 15.13 days, indicating continued efficiency in managing working capital and converting investments into cash promptly.
Peer comparison
Dec 31, 2024