HCA Healthcare Inc. (NYSE:HCA)

Current Ratio

The current ratio demonstrates a general declining trend from 1.62 in 2017 to 1.35 in 2018, followed by a slight recovery to 1.44 in 2019. It then marginally decreases to 1.42 in 2020 and to 1.41 in 2021. Overall, the ratio remains above 1.4 in the latest years, indicating that the company maintains a relatively stable ability to cover short-term liabilities with current assets despite minor fluctuations.

Quick Ratio

The quick ratio shows a notable reduction between 2017 and 2018, dropping from 1.17 to 0.96. A moderate increase occurs in 2019 to 1.03, followed by a slight, steady decline to 1.02 in 2020 and exactly 1.00 in 2021. This pattern suggests a modest decrease in the company's liquidity excluding inventories but stabilizing around a level that meets short-term obligations without excessive reliance on inventory liquidation.

Cash Ratio

The cash ratio fluctuates significantly over the period. It begins at 0.12 in 2017, declines to 0.07 in 2018, then experiences a minor increase to 0.08 in 2019. A substantial rise occurs in 2020, reaching 0.21, before decreasing again to 0.15 in 2021. These movements imply volatility in the company's cash reserves relative to current liabilities, with the highest liquidity recorded in 2020 potentially reflecting a strategic shift in cash management or an adaptation to external economic conditions.

The financial data reveals a progressive increase in current assets over the five-year period, indicating a steady buildup of liquid resources. Current assets rose from $9,977 million in 2017 to $13,542 million in 2021, reflecting consistent growth each year.

Similarly, current liabilities have also increased during the same timeframe, growing from $6,158 million in 2017 to $9,582 million in 2021. This upward trend in liabilities suggests an expansion in short-term obligations alongside the growth in assets.

The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, shows a decline from 1.62 in 2017 to 1.35 in 2018, followed by a slight recovery to around 1.44 in 2019. Subsequently, it stabilizes near 1.4 in 2020 and 2021. This pattern indicates a tightening in liquidity position between 2017 and 2018, with modest improvement and relative stability thereafter, albeit at a lower level than the initial year.

Current Assets

Consistently increased from $9,977M in 2017 to $13,542M in 2021, indicating growth in liquid or short-term resources.

Current Liabilities

Grew steadily from $6,158M in 2017 to $9,582M in 2021, signaling an increase in short-term obligations held by the company.

Current Ratio

Declined notably from 1.62 in 2017 to 1.35 in 2018, suggesting decreased short-term liquidity, then gradually improved and stabilized near 1.4 in subsequent years, reflecting a modest recovery while maintaining adequate coverage of liabilities.

The financial data reveals several notable trends over the five-year period ending in 2021. A review of liquidity indicators and related components indicates shifts in the company’s short-term financial position.

Total quick assets

There is a consistent upward trajectory in total quick assets from 2017 through 2021. Specifically, this figure increased from $7,233 million in 2017 to $9,546 million in 2021, reflecting ongoing growth in liquid assets or assets readily convertible to cash. This positive trend suggests strengthened availability of highly liquid resources over the years.

Current liabilities

Current liabilities also demonstrated an increasing pattern during the same period, rising from $6,158 million in 2017 to $9,582 million in 2021. The growth in current liabilities has been relatively steady, with a notable increase between 2017 and 2018 and continuous rises thereafter. This implies that the company's short-term obligations have grown substantially, possibly due to expanded operations or increased short-term borrowing.

Quick ratio

The quick ratio experienced variability, beginning at 1.17 in 2017, then decreasing below 1.0 to 0.96 in 2018. It partially recovered to slightly above 1.0 in the following years, registering 1.03 in 2019 and 1.02 in 2020, but declined again to exactly 1.0 in 2021. This fluctuation indicates that although the company's liquid assets generally cover its current liabilities, the margin of safety narrowed over time, particularly after 2017. The ratio close to or at 1.0 by 2021 signals a cautious liquidity position where quick assets are approximately equal to short-term liabilities, suggesting limited buffer to meet immediate debts without raising additional funds.

In summary, while liquid assets have grown steadily, current liabilities have expanded at a similar or faster pace, leading to a somewhat compressed liquidity ratio. The company maintains a near-equilibrium between quick assets and current liabilities, highlighting an ongoing focus on maintaining liquidity but with diminishing excess coverage. Continuous monitoring of these trends is advisable to ensure liquidity remains sufficient to meet obligations without strain.

Total Cash Assets

The total cash assets exhibited a fluctuating trend over the analyzed period. Initially, the amount declined from 732 million USD in 2017 to 502 million USD in 2018. Subsequently, there was a moderate increase to 621 million USD in 2019. A significant rise occurred in 2020, reaching 1,793 million USD, followed by a decrease to 1,451 million USD in 2021. Overall, the total cash assets showed volatility, with a peak in 2020.

Current Liabilities

Current liabilities showed a consistent upward trend throughout the period. The liabilities increased from 6,158 million USD in 2017 to 9,582 million USD in 2021. The growth was steady each year, suggesting an increasing level of short-term obligations.

Cash Ratio

The cash ratio, representing the ability to cover current liabilities with cash, generally remained low but exhibited some variation. It started at 0.12 in 2017, declined to a low of 0.07 in 2018, then slightly increased to 0.08 in 2019. A pronounced increase occurred in 2020, rising to 0.21, indicating improved liquidity. However, this ratio decreased again to 0.15 in 2021, reflecting a partial decline in cash coverage relative to liabilities.