HCA Holdings Inc (HCA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 935,000 | 908,000 | 1,451,000 | 1,793,000 | 621,000 |
| Short-term investments | US$ in thousands | 87,000 | 381,000 | 103,000 | 116,000 | 147,000 |
| Total current liabilities | US$ in thousands | 12,655,000 | 9,902,000 | 9,582,000 | 8,704,000 | 7,757,000 |
| Cash ratio | 0.08 | 0.13 | 0.16 | 0.22 | 0.10 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($935,000K
+ $87,000K)
÷ $12,655,000K
= 0.08
The cash ratio of HCA Healthcare Inc has shown fluctuations over the past five years. In 2023, the cash ratio stands at 0.23, indicating that the company has $0.23 in cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the previous year, where the cash ratio was 0.27.
Comparing the 2023 ratio to earlier years, we see a downward trend from 0.36 in 2021 and 0.37 in 2020. The lowest cash ratio was observed in 2019 at 0.25. This suggests that the company has become less liquid over the years in terms of its ability to cover its current liabilities with cash.
A cash ratio below 1.0 indicates that the company may face challenges in meeting its short-term financial obligations solely with its available cash and cash equivalents. It also suggests that HCA Healthcare Inc may be relying more on other liquid assets or external sources of funding to manage its current liabilities.
In conclusion, the decreasing trend in the cash ratio of HCA Healthcare Inc over the past five years highlights a potential liquidity risk. Further analysis of the company's cash management practices and liquidity position may be warranted to ensure its financial health and stability in the future.
Peer comparison
Dec 31, 2023