HCA (HCA Healthcare) Quick Ratio (2024)

FAQs

What is the quick ratio of HCA Healthcare? ›

HCA Healthcare has a quick ratio of 1.02. It generally indicates good short-term financial strength.

What is the average quick ratio for hospitals in the U.S.? The average quick ratio for hospitals in the U.S. is 2.65 and the median value is 1.70 based on data from more than 5,600 hospitals.

Generally speaking, a good quick ratio is anything above 1 or 1:1. A ratio of 1:1 would mean the company has the same amount of liquid assets as current liabilities. A higher ratio indicates the company could pay off current liabilities several times over.

Valuation Ratios

The trailing PE ratio is 16.84 and the forward PE ratio is 15.43. HCA Healthcare's PEG ratio is 1.44.

The company is the largest health network in the U.S. with 180 hospitals, 2,300 ambulatory sites of care, and over 50 years in business. HCA's size allows it to benefit from economies of scale and to invest heavily in technology, patient satisfaction, and its long-trusted brand – all of which further widen its moat.

Liquidity ratios, including the current ratio and quick ratio, measure the practice's ability to meet short-term financial obligations. Efficiency ratios, such as average collection period and patient-to-physician ratio, offer insights into operational efficiency.

Coca-Cola's quick ratio for fiscal years ending December 2019 to 2023 averaged 0.8x. Coca-Cola's operated at median quick ratio of 0.8x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Coca-Cola's quick ratio peaked in December 2020 at 1.0x.

A higher quick ratio is generally better, as it points to a company that is more resilient and prepared to cover its short-term obligations. However, interested parties should keep in mind that a very high quick ratio may not be a positive development.

If your business has a lower quick ratio than the industry average, it could indicate that it may have difficulty honouring its current debt obligations.

What is a good quick ratio? When it comes to the quick ratio, generally the higher it is, the better. As a business, you should aim for a ratio that is greater than or equal to one. A ratio of 1 or more shows your company has enough liquid assets to meet its short-term obligations.

What does a bad quick ratio tell you? ›

If a business's quick ratio is less than 1, it means it doesn't have enough quick assets to meet all its short-term obligations. If it suffers an interruption, it may find it difficult to raise the cash to pay its creditors. In addition, the business could have to pay high interest rates if it needs to borrow money.

A higher quick ratio signals that a company can be more liquid and generate cash quickly in case of emergency. Keep in mind that a very high quick ratio may not be better. For example, a company may be sitting on a very large cash balance. This capital could be used to generate company growth or invest in new markets.

HCA Healthcare has a conensus rating of Strong Buy which is based on 11 buy ratings, 2 hold ratings and 0 sell ratings. The average price target for HCA Healthcare is $343.54. This is based on 13 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Across the full year, HCA recorded a total of $65 billion in revenues, up from $60.2 billion in 2022. Net income was $5.2 billion ($18.97 per share) compared to 2022's $5.6 billion ($19.15 per share), the latter of which was, again, bolstered by the $1.3 billion gains on facility sales.

And under the control of its private equity owners, HCA has invested around $8 billion in its hospitals in the last five years, according to Securities and Exchange Commission findings.

The staff-to-patient ratio is a critical key performance indicator (KPI) that measures the number of staff available per patient in a healthcare facility. It's an important metric that healthcare providers can use to assess their resource management strategies and optimise their operations.

This ratio measures the hospital's ability to meet its current liabilities with its current assets (assets expected to be realized in cash during the fiscal year). A ratio of 1.0 or higher indicates that all current liabilities could be adequately covered by the hospital's existing current assets.

HCA Healthcare's fixed asset turnover for fiscal years ending December 2019 to 2023 averaged 2.2x. HCA Healthcare's operated at median fixed asset turnover of 2.3x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, HCA Healthcare's fixed asset turnover peaked in December 2019 at 2.3x.

Medical Statistics

A proportion is the comparison of a part to the whole. It is a type of ratio in which the numerator is included in the denominator. You might use a proportion to describe what fraction of clinic patients tested positive for HIV, or what percentage of the population is younger than 25 years of age.