HCA Healthcare Inc. (NYSE:HCA)

Goodwill

Goodwill showed a steady increase throughout the periods, rising from 7,035 million US dollars at the end of 2017 to 9,137 million US dollars by the end of 2021. This reflects a consistent accumulation of excess purchase price over the net fair value of identifiable assets acquired.

Identifiable intangible assets, gross carrying amount

The gross carrying amount of identifiable intangible assets remained stable at 184 million US dollars from 2017 through 2019, followed by an increase to 249 million in 2020 and further to 274 million in 2021. This indicates additions or revaluations during the later years.

Accumulated amortization

Accumulated amortization of intangible assets showed a consistent upward trend in absolute terms, increasing from a negative 94 million US dollars in 2017 to negative 175 million US dollars by 2021. This suggests systematic amortization of finite-lived intangible assets over time.

Identifiable intangible assets, net carrying amount

The net carrying amount of identifiable intangible assets exhibited a downward trend from 90 million US dollars in 2017 to 61 million in 2019, before rebounding to around 100 million in 2020 and slightly decreasing to 99 million in 2021. This pattern reflects the interplay of new acquisitions, amortization, and possible disposals or impairments.

Indefinite-lived identifiable intangible assets

The value of indefinite-lived identifiable intangible assets remained constant at 269 million US dollars from 2017 through 2020, with an increase to 304 million US dollars in 2021. This implies stability in assets like trademarks or licenses with indefinite useful lives, with a notable increase towards the end of the period.

Intangible assets (total)

Total intangible assets fluctuated somewhat, starting at 359 million US dollars in 2017, dipping slightly to 330 million in 2019, then rising steadily to 403 million US dollars by the end of 2021. This trend aligns with changes in identifiable intangible assets and reflects asset additions and amortization effects.

Goodwill and intangible assets (combined)

The aggregate value of goodwill and intangible assets increased consistently from 7,394 million US dollars at the end of 2017 to 9,540 million US dollars in 2021. This growth highlights ongoing acquisitions and the resultant buildup of intangible asset bases over the observed period.

Total Assets

The reported total assets of the company exhibited a consistent upward trend from 36,593 million US dollars in 2017 to 50,742 million US dollars in 2021. This reflects an overall increase of approximately 38.7% over the five-year period. Similarly, adjusted total assets, which consider goodwill adjustments, also showed steady growth, rising from 29,558 million US dollars in 2017 to 41,605 million US dollars in 2021. This represents an approximate increase of 40.8%, indicating that asset growth persists after adjusting for goodwill.

Stockholders' Equity (Reported)

The reported stockholders’ equity attributable to the company demonstrated a significant improvement, shifting from a negative balance of -6,806 million US dollars in 2017 to a positive balance of 572 million US dollars in 2020. However, this positive equity was not sustained, as the value declined to a deficit of -933 million US dollars in 2021. This fluctuation suggests volatility in reported equity during this period, with a notable recovery followed by a subsequent decline.

Stockholders' Equity (Adjusted)

The adjusted stockholders’ equity, which excludes goodwill impacts, consistently remained negative throughout the period. Starting at -13,841 million US dollars in 2017, the deficit narrowed to -7,637 million US dollars by 2020, indicating an improvement in the underlying equity position. Nevertheless, this trend reversed in 2021, with the deficit increasing again to -10,070 million US dollars. The persistent negative adjusted equity suggests ongoing concerns related to asset valuations or liabilities when goodwill effects are removed.

Overall Observations

Both reported and adjusted total assets display a positive growth trend, signaling expansion or acquisition activity over these years. The stockholders’ equity figures reveal more complex dynamics: reported equity shows improvement and then deterioration, while adjusted equity remains negative throughout, improving up to 2020 but worsening again afterward. This pattern may reflect changes in goodwill valuation, operational performance, or capital structure. The divergence between reported and adjusted equity highlights the importance of considering goodwill's impact when evaluating financial health.

The financial data exhibits several noteworthy trends over the observed period from 2017 to 2021.

Total Asset Turnover (Reported and Adjusted)

The reported total asset turnover ratio demonstrates a gradual decline from 1.19 in 2017 and 2018 to a low of 1.09 in 2020, followed by a moderate recovery to 1.16 in 2021. This indicates a slight reduction in the efficiency with which the company utilizes its assets to generate revenue, with a partial rebound in the final year observed.

The adjusted total asset turnover, which presumably excludes goodwill or other adjustments, mirrors this trend but maintains consistently higher values, starting at 1.48 in 2017 and 2018, dipping to 1.31 in 2020, and rising again to 1.41 in 2021. The adjustment reflects a more efficient asset base when excluding certain intangible assets, suggesting that goodwill has a dilutive impact on asset turnover ratios.

Financial Leverage (Reported and Adjusted)

Data on financial leverage is sparse, with only a single reported value of 83.02 for the reported financial leverage, and no values provided for the adjusted financial leverage. The isolated figure indicates a very high financial leverage at that particular period, but without continuity or comparable data points, trend analysis is not feasible.

Return on Equity (Reported and Adjusted)

Return on equity data is largely missing, except for a reported ROE of 656.29%, which appears as an outlier or possibly an error given the magnitude and lack of contextual data. Without a consistent data series, no trend or conclusive insight can be derived regarding ROE.

Return on Assets (Reported and Adjusted)

The reported return on assets (ROA) shows an increasing trend overall. Starting at 6.06% in 2017, it rises sharply to 9.66% in 2018, then experiences a decline to 7.78% in 2019, remains relatively stable at 7.9% in 2020, and surges to 13.71% in 2021. This suggests an improvement in asset profitability over the longer term, with some volatility mid-period.

The adjusted ROA presents a similar but more pronounced pattern, starting higher at 7.5% in 2017, increasing to 11.99% in 2018, then declining to 9.44% in 2019 and 9.56% in 2020, before reaching a peak of 16.72% in 2021. This adjusted measure indicates even stronger profitability when excluding certain asset adjustments, reinforcing the positive trend observed in 2021.

In summary, the company's assets appear to become more efficiently used after adjusting for goodwill, as indicated by higher adjusted asset turnover and ROA ratios. Asset efficiency dipped slightly during 2019 and 2020 but rebounded in 2021, coinciding with increased profitability. The lack of consistent financial leverage and ROE data limits the ability to fully evaluate capital structure impacts or equity returns. Overall, the company shows improving returns on assets, especially when adjusted, signaling enhanced operational performance in recent years.

Total Assets

The reported total assets increased steadily from US$36,593 million in 2017 to US$50,742 million in 2021, representing sustained asset growth over the five-year period. The adjusted total assets, which likely exclude goodwill, also followed an upward trend, rising from US$29,558 million in 2017 to US$41,605 million in 2021. This consistent increase reflects the company's expanding asset base regardless of the goodwill adjustment.

Total Asset Turnover

The reported total asset turnover ratio demonstrated a gradual decline from 1.19 in 2017 and 2018 to a low of 1.09 in 2020, before recovering slightly to 1.16 in 2021. This suggests that while asset utilization efficiency decreased over the initial years, it showed some improvement in the final year observed.

Similarly, the adjusted total asset turnover ratio, which excludes the impact of goodwill, decreased overall from 1.48 in 2017 and 2018 to 1.31 in 2020, before increasing to 1.41 in 2021. The higher values in comparison to the reported ratios indicate that when goodwill is excluded, the company’s assets are utilized more efficiently. The upward movement in 2021 suggests a recovery in asset utilization efficiency after a period of decline.

Insights

The consistent growth in total assets highlights ongoing investments or acquisitions by the company. However, the declining trend in asset turnover ratios until 2020 may indicate challenges in generating revenue efficiently from the expanded asset base during that period. The recovery in asset turnover in 2021, both reported and adjusted, may signal improved operational performance or better asset management strategies. The adjusted figures consistently exhibit higher turnover ratios, emphasizing the effect of goodwill on asset base inflation and its impact on efficiency metrics.

The financial data of the company over the period from 2017 to 2021 reveals several important trends in assets and equity, both on a reported and goodwill adjusted basis.

Total Assets

There is a consistent upward trend in both reported and adjusted total assets throughout the five-year period. Reported total assets increased from approximately US$36.6 billion in 2017 to about US$50.7 billion in 2021, marking a significant growth of roughly 38.6%. Adjusted total assets also followed a similar growth pattern, rising from around US$29.6 billion in 2017 to approximately US$41.6 billion in 2021, which corresponds to a growth of about 40.7%. This steady increase suggests ongoing expansion or asset acquisition activities during the period.

Stockholders’ Equity (Deficit) Attributable to HCA Healthcare, Inc.

The reported stockholders’ equity, which initially showed a substantial deficit of about US$6.8 billion in 2017, demonstrated notable improvement by 2020, reaching a positive figure of US$572 million, before declining again to a deficit of roughly US$933 million in 2021. This pattern indicates a reduction in negative equity up to 2020, followed by some deterioration the following year.

Conversely, the adjusted stockholders’ equity consistently reflected a significant and persistent deficit throughout the entire timeframe. Although there is a noticeable improvement from a deficit of about US$13.8 billion in 2017 to approximately US$7.6 billion in 2020, the year 2021 shows a worsening to around US$10.1 billion deficit. These values indicate sustained negative adjusted equity positions, although with fluctuations leaning toward improvement before the eventual regression in 2021.

Financial Leverage

Data for financial leverage ratios is largely unavailable or absent, with only a single reported financial leverage ratio recorded as 83.02 in 2020, without corresponding figures for other years. This missing information limits the ability to analyze leverage trends comprehensively. The isolated value in 2020 suggests a very high leverage level, yet without additional data points, a trend cannot be inferred.

Overall, the company’s asset base exhibits a clear growth trajectory, signaling capacity expansion or investment activity. However, the stockholders’ equity profile presents challenges, with persistent deficits especially visible in adjusted terms, indicating significant goodwill or intangible asset effects influencing the equity position. The incomplete financial leverage data constrains analysis of the company’s capital structure risk over time.

The analysis of the financial data reveals noteworthy fluctuations and trends in equity and return on equity (ROE) metrics over the presented period.

Reported Stockholders' Equity (Deficit) Attributable to HCA Healthcare, Inc.

There is a consistent improvement in the reported stockholders' equity deficit from 2017 through 2020. The deficit decreases substantially from minus 6806 million USD in 2017 to a positive 572 million USD in 2020, indicating a turnaround from negative to positive equity. However, in 2021, the reported equity reverts to a deficit of minus 933 million USD, reflecting some reversals in the company’s equity position after the 2020 peak.

Adjusted Stockholders' Equity (Deficit) Attributable to HCA Healthcare, Inc.

The adjusted stockholders' equity, which presumably accounts for goodwill and other adjustments, remains negative throughout the entire period, showing a consistent deficit. Nonetheless, the data display a clear trend of gradual improvement, with the deficit reducing from minus 13841 million USD in 2017 to minus 7637 million USD in 2020. Contrarily, in 2021, the adjusted equity deteriorates again to minus 10070 million USD, suggesting some adverse developments or valuation changes affecting adjusted equity.

Reported Return on Equity (ROE)

The reported ROE data are mostly unavailable for the years 2017 through 2020. A significant value of 656.29% appears for the year 2021, which is notably high and likely reflects the unusual dynamics in equity and earnings for that year. This figure may indicate extraordinary profitability or distortions driven by the reported equity base.

Adjusted Return on Equity (ROE)

No data are provided for adjusted ROE across all the years, limiting the ability to analyze the performance from an adjusted equity perspective.

Asset Trends

The reported total assets have exhibited a steady increase over the five-year period, rising from $36,593 million in 2017 to $50,742 million in 2021. Similarly, the adjusted total assets, which exclude goodwill, also showed consistent growth from $29,558 million in 2017 to $41,605 million in 2021. This pattern indicates a sustained expansion in the company's asset base, both on a reported and adjusted basis.

Return on Assets (ROA) Trends

Reported ROA demonstrated fluctuations within the period, starting at 6.06% in 2017 and peaking at 13.71% in 2021, with intermediate variations including an increase in 2018 to 9.66%, followed by a decrease in 2019 to 7.78%, remaining relatively stable in 2020 at 7.9%, before rising sharply in 2021. The adjusted ROA, which accounts for the exclusion of goodwill, displayed a similar trajectory but consistently remained higher than the reported ROA. It increased from 7.5% in 2017 to 16.72% in 2021, with a notable jump in 2018 to 11.99%, then a decline to 9.44% in 2019, a minor increase to 9.56% in 2020, and a strong rise in 2021.

Insights and Interpretation

The steady growth in both reported and adjusted total assets suggests active investment or acquisition strategies and possibly organic growth. The higher adjusted ROA compared to reported ROA across all years implies that goodwill adjustments improve the perceived efficiency of asset utilization, indicating that non-goodwill assets generate returns more favorably than when goodwill is included. The considerable increase in ROA metrics in 2021 signifies improved profitability or asset efficiency in that year, potentially reflecting successful operational or strategic initiatives.