Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
HCA Healthcare Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | HCA Healthcare Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | HCA Healthcare Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | HCA Healthcare Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | HCA Healthcare Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | HCA Healthcare Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | HCA Healthcare Inc. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | HCA Healthcare Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | HCA Healthcare Inc. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
HCA Healthcare Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Supplies | 9,481) | 8,369) | 8,481) | 7,724) | 7,316) | |
| Inventories | 1,986) | 2,025) | 1,849) | 1,732) | 1,573) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 4.77 | 4.13 | 4.59 | 4.46 | 4.65 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.59 | 2.99 | 3.07 | — | — | |
| Cigna Group | 31.58 | 32.70 | 36.70 | — | — | |
| CVS Health Corp. | 13.52 | 11.88 | 12.06 | — | — | |
| Intuitive Surgical Inc. | 2.98 | 2.49 | 2.30 | — | — | |
| Medtronic PLC | 2.43 | 2.23 | 2.44 | 2.53 | — | |
| Inventory Turnover, Sector | ||||||
| Health Care Equipment & Services | 23.69 | 20.89 | 21.66 | — | — | |
| Inventory Turnover, Industry | ||||||
| Health Care | 10.85 | 9.79 | 9.91 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Inventory turnover = Supplies ÷ Inventories
= 9,481 ÷ 1,986 = 4.77
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | HCA Healthcare Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Receivables Turnover
HCA Healthcare Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 58,752) | 51,533) | 51,336) | 46,677) | 43,614) | |
| Accounts receivable | 8,095) | 7,051) | 7,380) | 6,789) | 6,501) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 7.26 | 7.31 | 6.96 | 6.88 | 6.71 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 6.64 | 5.40 | 5.88 | — | — | |
| Cigna Group | 19.35 | 19.47 | 20.05 | — | — | |
| CVS Health Corp. | 11.91 | 12.32 | 13.04 | — | — | |
| Elevance Health Inc. | 20.66 | 19.72 | 18.20 | — | — | |
| Humana Inc. | 45.69 | 66.78 | 60.97 | — | — | |
| Intuitive Surgical Inc. | 7.30 | 6.75 | 6.94 | — | — | |
| Medtronic PLC | 5.51 | 6.22 | 4.91 | 5.00 | — | |
| UnitedHealth Group Inc. | 20.07 | 19.86 | 20.32 | — | — | |
| Receivables Turnover, Sector | ||||||
| Health Care Equipment & Services | 14.99 | 15.09 | 14.97 | — | — | |
| Receivables Turnover, Industry | ||||||
| Health Care | 9.51 | 9.57 | 9.86 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Revenues ÷ Accounts receivable
= 58,752 ÷ 8,095 = 7.26
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | HCA Healthcare Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Payables Turnover
HCA Healthcare Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Supplies | 9,481) | 8,369) | 8,481) | 7,724) | 7,316) | |
| Accounts payable | 4,111) | 3,535) | 2,905) | 2,577) | 2,606) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 2.31 | 2.37 | 2.92 | 3.00 | 2.81 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.21 | 3.80 | 4.07 | — | — | |
| Cigna Group | 7.68 | 7.75 | 9.34 | — | — | |
| CVS Health Corp. | 19.14 | 19.72 | 20.13 | — | — | |
| Elevance Health Inc. | 7.59 | 7.75 | 9.25 | — | — | |
| Humana Inc. | 8.35 | 7.57 | 8.97 | — | — | |
| Intuitive Surgical Inc. | 14.45 | 18.35 | 11.08 | — | — | |
| Medtronic PLC | 4.98 | 4.72 | 4.69 | 5.56 | — | |
| UnitedHealth Group Inc. | 7.63 | 7.29 | 7.21 | — | — | |
| Payables Turnover, Sector | ||||||
| Health Care Equipment & Services | 9.25 | 9.16 | 9.95 | — | — | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.67 | 7.51 | 8.04 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Supplies ÷ Accounts payable
= 9,481 ÷ 4,111 = 2.31
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | HCA Healthcare Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
HCA Healthcare Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 13,542) | 12,333) | 11,196) | 10,213) | 9,977) | |
| Less: Current liabilities | 9,582) | 8,704) | 7,757) | 7,569) | 6,158) | |
| Working capital | 3,960) | 3,629) | 3,439) | 2,644) | 3,819) | |
| Revenues | 58,752) | 51,533) | 51,336) | 46,677) | 43,614) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 14.84 | 14.20 | 14.93 | 17.65 | 11.42 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.87 | 4.06 | 6.64 | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | 7.23 | 6.39 | 6.11 | — | — | |
| Humana Inc. | 8.67 | 7.42 | 7.19 | — | — | |
| Intuitive Surgical Inc. | 1.22 | 0.77 | 1.23 | — | — | |
| Medtronic PLC | 2.15 | 2.48 | 2.26 | 2.32 | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Health Care Equipment & Services | 40.87 | 44.34 | 59.48 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 13.86 | 13.72 | 9.01 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Revenues ÷ Working capital
= 58,752 ÷ 3,960 = 14.84
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | HCA Healthcare Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Average Inventory Processing Period
HCA Healthcare Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 4.77 | 4.13 | 4.59 | 4.46 | 4.65 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 76 | 88 | 80 | 82 | 78 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Abbott Laboratories | 102 | 122 | 119 | — | — | |
| Cigna Group | 12 | 11 | 10 | — | — | |
| CVS Health Corp. | 27 | 31 | 30 | — | — | |
| Intuitive Surgical Inc. | 122 | 147 | 159 | — | — | |
| Medtronic PLC | 150 | 164 | 150 | 144 | — | |
| Average Inventory Processing Period, Sector | ||||||
| Health Care Equipment & Services | 15 | 17 | 17 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 34 | 37 | 37 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.77 = 76
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | HCA Healthcare Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Receivable Collection Period
HCA Healthcare Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 7.26 | 7.31 | 6.96 | 6.88 | 6.71 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 50 | 50 | 52 | 53 | 54 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 55 | 68 | 62 | — | — | |
| Cigna Group | 19 | 19 | 18 | — | — | |
| CVS Health Corp. | 31 | 30 | 28 | — | — | |
| Elevance Health Inc. | 18 | 19 | 20 | — | — | |
| Humana Inc. | 8 | 5 | 6 | — | — | |
| Intuitive Surgical Inc. | 50 | 54 | 53 | — | — | |
| Medtronic PLC | 66 | 59 | 74 | 73 | — | |
| UnitedHealth Group Inc. | 18 | 18 | 18 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Health Care Equipment & Services | 24 | 24 | 24 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 38 | 38 | 37 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.26 = 50
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
HCA Healthcare Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 76 | 88 | 80 | 82 | 78 | |
| Average receivable collection period | 50 | 50 | 52 | 53 | 54 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 126 | 138 | 132 | 135 | 132 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Abbott Laboratories | 157 | 190 | 181 | — | — | |
| Cigna Group | 31 | 30 | 28 | — | — | |
| CVS Health Corp. | 58 | 61 | 58 | — | — | |
| Intuitive Surgical Inc. | 172 | 201 | 212 | — | — | |
| Medtronic PLC | 216 | 223 | 224 | 217 | — | |
| Operating Cycle, Sector | ||||||
| Health Care Equipment & Services | 39 | 41 | 41 | — | — | |
| Operating Cycle, Industry | ||||||
| Health Care | 72 | 75 | 74 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 76 + 50 = 126
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | HCA Healthcare Inc. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Average Payables Payment Period
HCA Healthcare Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 2.31 | 2.37 | 2.92 | 3.00 | 2.81 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 158 | 154 | 125 | 122 | 130 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 87 | 96 | 90 | — | — | |
| Cigna Group | 48 | 47 | 39 | — | — | |
| CVS Health Corp. | 19 | 19 | 18 | — | — | |
| Elevance Health Inc. | 48 | 47 | 39 | — | — | |
| Humana Inc. | 44 | 48 | 41 | — | — | |
| Intuitive Surgical Inc. | 25 | 20 | 33 | — | — | |
| Medtronic PLC | 73 | 77 | 78 | 66 | — | |
| UnitedHealth Group Inc. | 48 | 50 | 51 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Health Care Equipment & Services | 39 | 40 | 37 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 48 | 49 | 45 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.31 = 158
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | HCA Healthcare Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
HCA Healthcare Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 76 | 88 | 80 | 82 | 78 | |
| Average receivable collection period | 50 | 50 | 52 | 53 | 54 | |
| Average payables payment period | 158 | 154 | 125 | 122 | 130 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -32 | -16 | 7 | 13 | 2 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Abbott Laboratories | 70 | 94 | 91 | — | — | |
| Cigna Group | -17 | -17 | -11 | — | — | |
| CVS Health Corp. | 39 | 42 | 40 | — | — | |
| Intuitive Surgical Inc. | 147 | 181 | 179 | — | — | |
| Medtronic PLC | 143 | 146 | 146 | 151 | — | |
| Cash Conversion Cycle, Sector | ||||||
| Health Care Equipment & Services | 0 | 1 | 4 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 24 | 26 | 29 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 76 + 50 – 158 = -32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | HCA Healthcare Inc. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |