HCA Holdings Inc (HCA)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.60 | 25.11 | 25.93 | 26.80 | 26.70 | 26.03 | 26.29 | 26.12 | 26.51 | 27.66 | 28.82 | 30.72 | 30.30 | 29.58 | 27.96 | 29.13 | 28.14 | 27.67 | 29.35 | 29.32 |
| Days of sales outstanding (DSO) | days | 55.95 | 53.06 | 51.36 | 51.90 | 53.88 | 52.20 | 52.40 | 52.07 | 50.29 | 51.75 | 48.77 | 50.78 | 49.94 | 46.18 | 44.87 | 48.90 | 52.47 | 53.66 | 55.50 | 58.32 |
| Number of days of payables | days | 51.53 | 51.21 | 48.36 | 48.45 | 54.73 | 53.92 | 48.16 | 52.30 | 54.89 | 51.50 | 50.20 | 52.35 | 52.89 | 49.60 | 43.94 | 41.02 | 44.21 | 40.83 | 41.94 | 44.41 |
| Cash conversion cycle | days | 29.02 | 26.97 | 28.93 | 30.26 | 25.85 | 24.31 | 30.53 | 25.90 | 21.92 | 27.91 | 27.39 | 29.15 | 27.35 | 26.16 | 28.90 | 37.01 | 36.40 | 40.50 | 42.91 | 43.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.60 + 55.95 – 51.53
= 29.02
The cash conversion cycle provides insight into how efficiently HCA Healthcare Inc is managing its working capital. Analyzing the data from the table, we observe that the company's cash conversion cycle has been relatively stable over the past eight quarters, ranging from 51.36 days to 55.95 days.
A lower cash conversion cycle indicates that the company is able to efficiently convert its investments in inventory into cash. HCA Healthcare Inc's cash conversion cycle has shown a decreasing trend in recent quarters, indicating improved efficiency in managing inventory, accounts receivable, and accounts payable.
Overall, HCA Healthcare Inc's cash conversion cycle performance suggests that the company is effectively managing its working capital and operations to generate cash flow. Continued monitoring of this metric will be crucial to assess the company's ongoing financial health and operational efficiency.
Peer comparison
Dec 31, 2023