HCA Holdings Inc (HCA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 18.13 | 18.64 | 19.02 | 31.21 | 74.50 | 76.02 | 77.54 | 80.34 | 80.55 | 78.38 | 78.50 | 76.33 | 76.46 | 78.09 | 81.28 | 89.12 | 88.32 | 86.47 | 81.71 | 83.25 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 18.13 | 18.64 | 19.02 | 31.21 | 74.50 | 76.02 | 77.54 | 80.34 | 80.55 | 78.38 | 78.50 | 76.33 | 76.46 | 78.09 | 81.28 | 89.12 | 88.32 | 86.47 | 81.71 | 83.25 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 18.13 + — – —
= 18.13
The cash conversion cycle of HCA Holdings Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to March 31, 2023, the trend was generally increasing, indicating a longer time for the company to convert its resources into cash. However, from March 31, 2023, to December 31, 2024, there was a significant improvement in the cash conversion cycle, with a substantial decrease in the number of days required.
The cash conversion cycle reached its peak at 89.12 days on March 31, 2021, and has shown a downward trend since then, reaching its lowest point at 18.13 days on December 31, 2024. This improvement suggests that HCA Holdings Inc has been able to manage its working capital more efficiently, leading to quicker conversions of inventory and other investments into cash.
Overall, the decreasing trend in the cash conversion cycle indicates an improvement in the company's liquidity management and efficiency in converting its assets into cash. This could potentially translate into better financial performance and increased operational effectiveness for HCA Holdings Inc.
Peer comparison
Dec 31, 2024