HCA Holdings Inc (HCA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.08 | 1.12 | 1.06 | 1.16 | 1.18 | 1.15 | 1.20 | 1.23 | 1.38 | 1.38 | 1.55 | 1.43 | 1.41 | 1.38 | 1.45 | 1.39 | 1.42 | 1.13 | 1.09 | 1.57 |
| Quick ratio | 0.13 | 0.20 | 0.07 | 0.10 | 0.08 | 0.08 | 0.08 | 0.11 | 0.13 | 0.11 | 0.11 | 0.23 | 0.20 | 0.15 | 0.18 | 0.16 | 0.25 | 0.49 | 0.36 | 0.10 |
| Cash ratio | 0.13 | 0.20 | 0.07 | 0.10 | 0.08 | 0.08 | 0.08 | 0.11 | 0.13 | 0.11 | 0.11 | 0.23 | 0.20 | 0.15 | 0.18 | 0.16 | 0.25 | 0.49 | 0.36 | 0.10 |
HCA Holdings Inc's liquidity ratios indicate a relatively stable liquidity position over the past few years. The current ratio has fluctuated slightly but generally remained above 1, suggesting that the company has had sufficient current assets to cover its current liabilities. However, there was a noticeable decline in the current ratio at the end of 2024, which may require further investigation.
The quick ratio, which considers only the most liquid assets, also showed fluctuations but generally stayed at low levels, indicating that the company may have faced challenges in meeting its short-term obligations without relying on inventory.
The cash ratio, which provides the most conservative liquidity measure by considering only cash and cash equivalents, displayed similar trends to the quick ratio, indicating that HCA Holdings Inc may have had limited cash reserves compared to its current liabilities.
Overall, while the current ratio suggests that HCA Holdings Inc has maintained a satisfactory level of liquidity, the lower quick and cash ratios may indicate potential liquidity constraints that the company needs to address to ensure its ability to meet short-term obligations.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of HCA Holdings Inc provides insight into how long it takes the company to convert its investments in inventory and accounts receivable into cash receipts from customers.
Analyzing the trend in HCA's cash conversion cycle over the past few years, we can observe fluctuations. The cycle decreased from 83.25 days as of March 31, 2020, to a low of 18.13 days as of December 31, 2024.
A decreasing trend in the cash conversion cycle is generally considered positive, as it suggests that the company is managing its working capital more efficiently by reducing the time it takes to convert investments into cash.
The significant decrease observed in HCA's cash conversion cycle from March 31, 2024, to December 31, 2024, indicates potential improvements in inventory and accounts receivable management, leading to quicker cash inflows.
It is important to further investigate the reasons behind this reduction to assess the effectiveness of the company's operational and financial strategies.