HCA Holdings Inc (HCA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 9,958,000 | 8,891,000 | 8,095,000 | 7,051,000 | 7,380,000 |
| Total current liabilities | US$ in thousands | 12,655,000 | 9,902,000 | 9,582,000 | 8,704,000 | 7,757,000 |
| Quick ratio | 0.87 | 1.03 | 1.01 | 1.03 | 1.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($935,000K
+ $87,000K
+ $9,958,000K)
÷ $12,655,000K
= 0.87
The quick ratio of HCA Healthcare Inc has exhibited a declining trend over the past five years, from 1.20 in 2019 to 1.02 in 2023. This trend indicates a decrease in the company's ability to meet its short-term obligations with its most liquid assets.
While a quick ratio of above 1 generally suggests that a company has an adequate level of liquid assets to cover its current liabilities, the decreasing trend may raise concerns about HCA Healthcare Inc's liquidity position.
It is essential for investors and stakeholders to monitor this ratio closely, as a further decline could indicate potential liquidity challenges for the company in the future. Further analysis of the company's cash flow and working capital management practices may provide deeper insights into the factors driving this trend.
Peer comparison
Dec 31, 2023