Stock Analysis on Net

HCA Healthcare Inc. (NYSE:HCA)

This company has been moved to the archive! The financial data has not been updated since May 3, 2022.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

HCA Healthcare Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Goodwill 9,137 8,209 7,939 7,611 7,035
Identifiable intangible assets, gross carrying amount 274 249 184 184 184
Accumulated amortization (175) (149) (123) (111) (94)
Identifiable intangible assets, net carrying amount 99 100 61 73 90
Indefinite-lived identifiable intangible assets 304 269 269 269 269
Intangible assets 403 369 330 342 359
Goodwill and intangible assets 9,540 8,578 8,269 7,953 7,394

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. HCA Healthcare Inc. goodwill increased from 2019 to 2020 and from 2020 to 2021.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. HCA Healthcare Inc. intangible assets increased from 2019 to 2020 and from 2020 to 2021.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. HCA Healthcare Inc. goodwill and intangible assets increased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Goodwill

HCA Healthcare Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 50,742 47,490 45,058 39,207 36,593
Less: Goodwill 9,137 8,209 7,939 7,611 7,035
Total assets (adjusted) 41,605 39,281 37,119 31,596 29,558
Adjustment to Stockholders’ Equity (deficit) Attributable To HCA Healthcare, Inc.
Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (as reported) (933) 572 (2,808) (4,950) (6,806)
Less: Goodwill 9,137 8,209 7,939 7,611 7,035
Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (adjusted) (10,070) (7,637) (10,747) (12,561) (13,841)

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).


HCA Healthcare Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

HCA Healthcare Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Asset Turnover
Reported total asset turnover 1.16 1.09 1.14 1.19 1.19
Adjusted total asset turnover 1.41 1.31 1.38 1.48 1.48
Financial Leverage
Reported financial leverage 83.02
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE 656.29%
Adjusted ROE
Return on Assets (ROA)
Reported ROA 13.71% 7.90% 7.78% 9.66% 6.06%
Adjusted ROA 16.72% 9.56% 9.44% 11.99% 7.50%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. HCA Healthcare Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. HCA Healthcare Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

HCA Healthcare Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenues 58,752 51,533 51,336 46,677 43,614
Total assets 50,742 47,490 45,058 39,207 36,593
Activity Ratio
Total asset turnover1 1.16 1.09 1.14 1.19 1.19
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 58,752 51,533 51,336 46,677 43,614
Adjusted total assets 41,605 39,281 37,119 31,596 29,558
Activity Ratio
Adjusted total asset turnover2 1.41 1.31 1.38 1.48 1.48

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).

2021 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 58,752 ÷ 50,742 = 1.16

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 58,752 ÷ 41,605 = 1.41

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. HCA Healthcare Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 50,742 47,490 45,058 39,207 36,593
Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (933) 572 (2,808) (4,950) (6,806)
Solvency Ratio
Financial leverage1 83.02
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 41,605 39,281 37,119 31,596 29,558
Adjusted stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (10,070) (7,637) (10,747) (12,561) (13,841)
Solvency Ratio
Adjusted financial leverage2

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).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 50,742 ÷ -933 =

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 41,605 ÷ -10,070 =


Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to HCA Healthcare, Inc. 6,956 3,754 3,505 3,787 2,216
Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (933) 572 (2,808) (4,950) (6,806)
Profitability Ratio
ROE1 656.29%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to HCA Healthcare, Inc. 6,956 3,754 3,505 3,787 2,216
Adjusted stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (10,070) (7,637) (10,747) (12,561) (13,841)
Profitability Ratio
Adjusted ROE2

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).

2021 Calculations

1 ROE = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 100 × 6,956 ÷ -933 =

2 Adjusted ROE = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Adjusted stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 100 × 6,956 ÷ -10,070 =


Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to HCA Healthcare, Inc. 6,956 3,754 3,505 3,787 2,216
Total assets 50,742 47,490 45,058 39,207 36,593
Profitability Ratio
ROA1 13.71% 7.90% 7.78% 9.66% 6.06%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to HCA Healthcare, Inc. 6,956 3,754 3,505 3,787 2,216
Adjusted total assets 41,605 39,281 37,119 31,596 29,558
Profitability Ratio
Adjusted ROA2 16.72% 9.56% 9.44% 11.99% 7.50%

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).

2021 Calculations

1 ROA = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Total assets
= 100 × 6,956 ÷ 50,742 = 13.71%

2 Adjusted ROA = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Adjusted total assets
= 100 × 6,956 ÷ 41,605 = 16.72%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. HCA Healthcare Inc. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.