HCA Holdings Inc (HCA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.44 | 1.51 | 1.44 | 1.05 |
| Quick ratio | 0.87 | 0.82 | 0.84 | 0.90 | 1.03 | 0.99 | 1.07 | 1.04 | 1.01 | 1.03 | 1.06 | 1.02 | 1.03 | 0.93 | 0.84 | 1.09 | 1.05 | 1.09 | 1.09 | 0.76 |
| Cash ratio | 0.08 | 0.08 | 0.08 | 0.11 | 0.13 | 0.11 | 0.11 | 0.23 | 0.16 | 0.15 | 0.18 | 0.16 | 0.22 | 0.49 | 0.36 | 0.10 | 0.10 | 0.09 | 0.28 | 0.06 |
The liquidity ratios of HCA Healthcare Inc show some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been declining gradually from 1.55 in Q2 2022 to 1.18 in Q4 2023. This suggests a potential strain on the company's ability to meet its short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also exhibits a decreasing trend from 1.32 in Q2 2022 to 1.02 in Q4 2023. This trend indicates a dwindling ability to meet current liabilities without relying on inventory.
The cash ratio, which is the most conservative liquidity metric focusing solely on cash and cash equivalents to cover current liabilities, has also experienced a downward trend, falling from 0.36 in Q2 2022 to 0.23 in Q4 2023. This decline suggests a reduced capacity to cover short-term obligations with readily available cash resources.
Overall, the liquidity ratios of HCA Healthcare Inc paint a picture of decreasing liquidity over the examined quarter, indicating a potential need for improved management of current assets and liabilities to maintain a healthy financial position.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for HCA Healthcare Inc has shown a consistent trend over the past eight quarters. The company's cash conversion cycle has ranged from 51.36 days to 55.95 days during this period.
HCA Healthcare's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital, while a longer cycle may suggest inefficiencies in cash flow management.
Based on the data provided:
- The average cash conversion cycle for HCA Healthcare Inc over the eight quarters is approximately 53.02 days.
- There appears to be a slight increase in the cash conversion cycle from Q1 2022 to Q4 2023, indicating a potential slowdown in the company's cash conversion efficiency during this period.
- Despite minor fluctuations, the company's cash conversion cycle has remained relatively stable, hovering around the mid-50s range.
Overall, HCA Healthcare Inc's cash conversion cycle analysis suggests that the company has been able to effectively manage its working capital and convert its investments into cash inflows within a reasonable timeframe.