Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
HCA Healthcare Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
The analysis of the liquidity ratios over the observed quarters reveals several noteworthy trends. The current ratio exhibits some fluctuations but generally remains above 1.0, indicating that the company consistently maintains sufficient current assets to cover its current liabilities. Observing the periods from early 2017 to early 2019, there is a visible decline in the current ratio, reaching a low point near 1.05. From mid-2019 onward, the ratio tends to recover somewhat, stabilizing around values slightly above 1.4 by early 2022.
Regarding the quick ratio, a similar pattern is observed, though values are slightly lower compared to the current ratio, as expected since it excludes inventory. The quick ratio decreases notably from early 2017 through early 2019, reaching lows near 0.76, before improving and stabilizing in a range close to 1.0 from mid-2019 to early 2022. This suggests the company's more liquid assets relative to current liabilities have seen recovery and stabilization in recent periods.
The cash ratio displays higher volatility than the other ratios, with generally low values reflecting limited cash holdings relative to current liabilities. A significant spike is seen in mid-2019 and again in mid-2020, when the ratio peaks at values 0.27 and 0.46 respectively, indicating temporarily increased cash or cash equivalents. Following these peaks, the ratio declines again but maintains a modest upward trend toward early 2022, ending at 0.23.
- Current Ratio
- Shows a declining trend from above 1.6 in early 2017 to just above 1.0 in early 2019, then recovers and stabilizes around 1.4 by early 2022.
- Quick Ratio
- Mirrors the current ratio's trend with a decrease to a low under 0.8 by early 2019, followed by a gradual recovery close to 1.0 through early 2022.
- Cash Ratio
- Exhibits pronounced volatility with notable peaks in mid-2019 and mid-2020, suggesting episodic increases in cash; otherwise fluctuates at low levels generally below 0.2, recovering somewhat by early 2022.
Overall, the liquidity measures reflect a period of tightening liquidity through 2017 to 2019, followed by a phase of improvement and relative stabilization. The spikes in cash ratio indicate selective periods of enhanced cash reserves, which could be related to operational or financing activities. The consistent maintenance of current and quick ratios above or near 1.0 in the later periods signals an adequate ability to meet short-term obligations.
Current Ratio
HCA Healthcare Inc., current ratio calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 15,006) | 13,542) | 13,248) | 12,475) | 12,036) | 12,333) | 16,266) | 14,031) | 11,016) | 11,196) | 10,769) | 12,869) | 11,108) | 10,213) | 10,010) | 10,394) | 10,391) | 9,977) | 9,448) | 9,337) | 9,037) | |||||||
| Current liabilities | 10,518) | 9,582) | 9,624) | 8,615) | 8,642) | 8,704) | 14,379) | 12,856) | 7,019) | 7,757) | 7,124) | 8,961) | 10,531) | 7,569) | 6,231) | 7,625) | 7,478) | 6,158) | 5,611) | 5,771) | 5,463) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 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 | 1.35 | 1.61 | 1.36 | 1.39 | 1.62 | 1.68 | 1.62 | 1.65 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 1.85 | 1.85 | 1.83 | 1.79 | 1.75 | 1.72 | 1.70 | 1.57 | 1.43 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 1.36 | 1.47 | 1.48 | 1.49 | 1.57 | 1.55 | 1.59 | 1.64 | 1.53 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 5.22 | 5.08 | 5.58 | 5.99 | 6.71 | 6.86 | 7.04 | 6.38 | 4.96 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 2.89 | 2.65 | 2.10 | 2.16 | 1.87 | 2.13 | 2.75 | 2.77 | 2.67 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 0.78 | 0.79 | 0.77 | 0.77 | 0.74 | 0.74 | 0.82 | 0.84 | 0.75 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,006 ÷ 10,518 = 1.43
2 Click competitor name to see calculations.
- Current Assets
- Current assets showed a general upward trend over the analyzed periods. Starting at approximately $9,037 million in March 2017, the figure increased gradually, reaching a peak of about $16,266 million in September 2020. After this peak, a decline occurred during the remaining part of 2020, with values falling to $12,333 million by December 2020. Subsequently, current assets rose again steadily, culminating in $15,006 million in March 2022. This pattern indicates a tendency for seasonal or cyclical fluctuations superimposed on an overall growth trajectory across the timeframe.
- Current Liabilities
- Current liabilities similarly exhibited an increasing trend but with more pronounced volatility. Starting at $5,463 million in March 2017, liabilities increased notably in the periods around mid-2019 to mid-2020, peaking at $14,379 million in June 2020, which could reflect increased short-term obligations during that timeframe. Following this peak, liabilities declined sharply to $8,704 million by December 2020, before fluctuating moderately around the $9,000 to $10,500 million range up to March 2022. This variability suggests responsiveness to operational or external factors influencing short-term debt levels and obligations.
- Current Ratio
- The current ratio, representing short-term liquidity by comparing current assets to current liabilities, showed variability but remained generally within a moderate range. Starting at 1.65 in March 2017, the ratio decreased to around 1.35-1.39 in several quarters during 2018 and early 2019, indicating a tightening in liquidity. A low point was observed at 1.05 in March 2019, signifying near parity between assets and liabilities. Following this low, the ratio improved, fluctuating between 1.4 and 1.6 through 2019 and the early part of 2020. Despite a dip to 1.09 in June 2020—corresponding to the peak in liabilities and a dip in assets— the ratio recovered thereafter to stabilize between 1.38 and 1.45 in the final quarters. This stability suggests that, despite fluctuations, the company generally maintained a reasonable buffer of current assets over current liabilities.
Quick Ratio
HCA Healthcare Inc., quick ratio calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,371) | 1,451) | 1,027) | 1,120) | 1,030) | 1,793) | 6,588) | 4,638) | 731) | 621) | 559) | 2,430) | 531) | 502) | 578) | 868) | 1,086) | 732) | 718) | 705) | 753) | |||||||
| Accounts receivable | 8,520) | 8,095) | 8,433) | 7,636) | 7,424) | 7,051) | 6,433) | 6,139) | 6,890) | 7,380) | 7,131) | 7,219) | 7,420) | 6,789) | 6,532) | 6,592) | 6,332) | 6,501) | 5,980) | 5,782) | 5,664) | |||||||
| Total quick assets | 10,891) | 9,546) | 9,460) | 8,756) | 8,454) | 8,844) | 13,021) | 10,777) | 7,621) | 8,001) | 7,690) | 9,649) | 7,951) | 7,291) | 7,110) | 7,460) | 7,418) | 7,233) | 6,698) | 6,487) | 6,417) | |||||||
| Current liabilities | 10,518) | 9,582) | 9,624) | 8,615) | 8,642) | 8,704) | 14,379) | 12,856) | 7,019) | 7,757) | 7,124) | 8,961) | 10,531) | 7,569) | 6,231) | 7,625) | 7,478) | 6,158) | 5,611) | 5,771) | 5,463) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 1.04 | 1.00 | 0.98 | 1.02 | 0.98 | 1.02 | 0.91 | 0.84 | 1.09 | 1.03 | 1.08 | 1.08 | 0.76 | 0.96 | 1.14 | 0.98 | 0.99 | 1.17 | 1.19 | 1.12 | 1.17 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 1.21 | 1.28 | 1.25 | 1.19 | 1.16 | 1.14 | 1.01 | 0.93 | 0.83 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 1.23 | 1.33 | 1.33 | 1.35 | 1.43 | 1.42 | 1.45 | 1.49 | 1.37 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 4.40 | 4.34 | 4.66 | 5.12 | 5.76 | 5.96 | 5.93 | 5.40 | 4.00 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 2.06 | 1.91 | 1.58 | 1.63 | 1.37 | 1.50 | 2.05 | 2.02 | 1.95 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 0.72 | 0.72 | 0.71 | 0.71 | 0.68 | 0.68 | 0.75 | 0.76 | 0.66 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 10,891 ÷ 10,518 = 1.04
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends in the liquidity position over the examined period. Total quick assets, an indicator of liquid assets readily available to cover current liabilities, show fluctuations with a general upward movement despite some volatility. Starting at $6.4 billion in the first quarter of 2017, the total quick assets increased to nearly $10.9 billion by the first quarter of 2022, peaking notably at around $13 billion in the third quarter of 2020. This peak corresponds to a period of heightened liquidity, possibly reflecting strategic asset management or responses to external financial conditions.
Current liabilities exhibit more variability, initially increasing from $5.5 billion in early 2017 up to a substantial $14.4 billion by the second quarter of 2020. Subsequently, current liabilities decreased sharply but remained elevated compared to earlier years, fluctuating around $9.5 to $10.5 billion toward early 2022. The volatility in current liabilities suggests changes in short-term obligations, which could be due to operational dynamics or changes in financing structure.
The quick ratio, measuring the ability to meet short-term liabilities with liquid assets, demonstrates notable fluctuations throughout the period. The early years show ratios mostly above 1.0, indicating prudent liquidity management. However, significant dips below 1.0 occurred intermittently, such as in the first quarter of 2018 (0.99), first quarter of 2019 (0.76), and notably during mid-2020 with values as low as 0.84 and 0.91. These declines in the quick ratio reveal periods where current liabilities outpaced quick assets, potentially indicating tighter liquidity conditions or increased reliance on short-term financing.
Following mid-2020, the quick ratio generally recovered, stabilizing around 1.0 and slightly above, reflecting an improved liquidity position back to balanced levels. The return to or above the critical threshold of 1.0 in late 2020 through early 2022 indicates a restoration of relative liquidity strength, notwithstanding some minor dips.
Overall, the financial data show an organization balancing liquidity and obligations with periods of significant shifts, particularly during 2020, which may correlate with broader economic or sector-specific events impacting liquidity management. The general trend towards higher total quick assets combined with efforts to manage current liabilities supports a cautious but adaptive liquidity strategy over the analyzed quarters.
- Total Quick Assets
- Increased from $6.4 billion in early 2017 to $10.9 billion by early 2022, with peaks in late 2020, indicating enhanced liquid asset holdings.
- Current Liabilities
- Rose sharply to $14.4 billion by mid-2020 before decreasing and stabilizing around $9.5 to $10.5 billion through 2022, reflecting variability in short-term financial obligations.
- Quick Ratio
- Showed fluctuations with periods below 1.0 indicating liquidity pressures, especially around mid-2020, but generally returned to or above 1.0 in later periods, signifying restored liquidity strength.
Cash Ratio
HCA Healthcare Inc., cash ratio calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,371) | 1,451) | 1,027) | 1,120) | 1,030) | 1,793) | 6,588) | 4,638) | 731) | 621) | 559) | 2,430) | 531) | 502) | 578) | 868) | 1,086) | 732) | 718) | 705) | 753) | |||||||
| Total cash assets | 2,371) | 1,451) | 1,027) | 1,120) | 1,030) | 1,793) | 6,588) | 4,638) | 731) | 621) | 559) | 2,430) | 531) | 502) | 578) | 868) | 1,086) | 732) | 718) | 705) | 753) | |||||||
| Current liabilities | 10,518) | 9,582) | 9,624) | 8,615) | 8,642) | 8,704) | 14,379) | 12,856) | 7,019) | 7,757) | 7,124) | 8,961) | 10,531) | 7,569) | 6,231) | 7,625) | 7,478) | 6,158) | 5,611) | 5,771) | 5,463) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.23 | 0.15 | 0.11 | 0.13 | 0.12 | 0.21 | 0.46 | 0.36 | 0.10 | 0.08 | 0.08 | 0.27 | 0.05 | 0.07 | 0.09 | 0.11 | 0.15 | 0.12 | 0.13 | 0.12 | 0.14 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | 0.65 | 0.78 | 0.75 | 0.71 | 0.67 | 0.60 | 0.46 | 0.46 | 0.34 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | 0.86 | 0.95 | 0.97 | 0.97 | 1.08 | 1.04 | 1.04 | 1.10 | 0.95 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | 3.58 | 3.66 | 3.98 | 4.42 | 5.04 | 5.30 | 5.27 | 4.85 | 3.44 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | 1.36 | 1.27 | 1.17 | 1.18 | 0.99 | 1.06 | 1.33 | 1.27 | 1.25 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | 0.37 | 0.36 | 0.35 | 0.35 | 0.33 | 0.33 | 0.37 | 0.42 | 0.35 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,371 ÷ 10,518 = 0.23
2 Click competitor name to see calculations.
The financial data exhibits several notable trends over the reported periods. Total cash assets demonstrate considerable volatility, with some pronounced peaks and troughs. Initially, cash assets fluctuate moderately around several hundred million US dollars, notably rising significantly in the early quarters of 2019 and peaking sharply towards mid-2020. This spike suggests a substantial cash accumulation during this period, potentially indicating a strategic liquidity buildup. However, subsequent quarters reveal a sharp reduction followed by a more stabilized but lower cash asset level, reflecting possible cash utilization or investment after the peak.
Current liabilities exhibit a generally upward trajectory throughout the timeline, despite some fluctuations. Starting at a lower level in early 2017, liabilities increase overall, reaching a high around mid-2020. This increase aligns with the period of cash asset accumulation, potentially indicating increased operational or financing activity. After the peak, current liabilities show a slight decline but remain elevated relative to the initial periods, suggesting that the company is managing a larger short-term obligation base.
The cash ratio follows a pattern largely consistent with the changes observed in cash assets relative to current liabilities. It remains low in the initial periods, indicating limited cash coverage of current liabilities. A significant increase occurs around mid-2020, with the ratio more than tripling compared to prior quarters, driven by the spike in cash assets. Following this peak, the ratio declines but stays above earlier historical levels, implying improved but still moderate cash liquidity relative to short-term liabilities compared to the initial timeframe.
- Total Cash Assets
- Moderate fluctuations initially, followed by a sharp increase peaking in mid-2020, and then a notable decrease with stabilization at a higher level than early periods.
- Current Liabilities
- General upward trend with fluctuations, peaking around mid-2020, then slightly declining but sustained at elevated levels compared to the starting point.
- Cash Ratio
- Consistently low in early periods, noticeable sharp rise coinciding with cash asset peak in mid-2020, followed by a decline but maintained at improved levels over early years.
Overall, the pattern suggests a period of aggressive liquidity accumulation around 2020, possibly as a response to external conditions requiring enhanced cash reserves, with current liabilities also increasing, indicating more significant short-term financial obligations. The subsequent normalization points to a strategic deployment or consumption of cash resources while maintaining a cautious liquidity position relative to liabilities.