Stock Analysis on Net
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 Income Taxes

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Income Tax Expense (Benefit)

HCA Healthcare Inc., income tax expense (benefit), continuing operations

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal 1,769 1,021 670 759 1,067
State 311 126 134 149 120
Foreign 15 5 17 23 19
Current 2,095 1,152 821 931 1,206
Federal 24 (73) 254 9 423
State (18) (39) 29 13 3
Foreign 11 3 (5) (7) 6
Deferred 17 (109) 278 15 432
Provision for income taxes 2,112 1,043 1,099 946 1,638

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
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. HCA Healthcare Inc. current increased from 2019 to 2020 and from 2020 to 2021.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. HCA Healthcare Inc. deferred decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. HCA Healthcare Inc. provision for income taxes decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Effective Income Tax Rate (EITR)

HCA Healthcare Inc., effective income tax rate (EITR) reconciliation

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
State income taxes, net of federal tax benefit 2.00% 1.90% 2.70% 2.90% 2.20%
Change in liability for uncertain tax positions 0.70% -0.20% 0.40% -0.10% 0.00%
Tax benefit from settlements of employee equity awards -1.20% -1.80% -1.30% -2.40% -2.00%
Income attributable to noncontrolling interests from consolidated partnerships -1.80% -2.50% -2.90% -2.30% -5.10%
Other items, net 0.80% 0.80% 1.10% 0.20% -0.50%
Effective income tax rate, before impact of Tax Act on deferred tax balances 21.50% 19.20% 21.00% 19.30% 29.60%
Impact of Tax Act on deferred tax balances 0.00% 0.00% 0.00% -1.60% 7.80%
Effective income tax rate 21.50% 19.20% 21.00% 17.70% 37.40%

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
Effective income tax rate, before impact of Tax Act on deferred tax balances Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. HCA Healthcare Inc. effective income tax rate, before impact of Tax Act on deferred tax balances decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Components of Deferred Tax Assets and Liabilities

HCA Healthcare Inc., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Allowances for professional liability and other risks 426 407 376 355 345
Accounts receivable 348 283 307 274 243
Compensation 502 487 292 256 263
Right-of-use lease assets and obligations 428 416 369 — —
Other 499 485 461 424 420
Deferred tax assets 2,203 2,078 1,805 1,309 1,271
Depreciation and fixed asset basis differences (737) (678) (601) (340) (260)
Right-of-use lease assets and obligations (419) (409) (366) — —
Other (652) (606) (538) (491) (501)
Deferred tax liabilities (1,808) (1,693) (1,505) (831) (761)
Deferred tax assets (liabilities), net 395 385 300 478 510

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
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. HCA Healthcare Inc. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets (liabilities), net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. HCA Healthcare Inc. deferred tax assets (liabilities), net increased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Deferred Taxes

HCA Healthcare Inc., adjustments to financial statements

US$ in millions

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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: Noncurrent deferred tax assets, net 395 385 300 478 510
Total assets (adjusted) 50,347 47,105 44,758 38,729 36,083
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: Net deferred tax assets (liabilities) 395 385 300 478 510
Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (adjusted) (1,328) 187 (3,108) (5,428) (7,316)
Adjustment to Net Income Attributable To HCA Healthcare, Inc.
Net income attributable to HCA Healthcare, Inc. (as reported) 6,956 3,754 3,505 3,787 2,216
Add: Deferred income tax expense (benefit) 17 (109) 278 15 432
Net income attributable to HCA Healthcare, Inc. (adjusted) 6,973 3,645 3,783 3,802 2,648

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 Deferred Taxes (Summary)

HCA Healthcare Inc., adjusted financial ratios

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 11.84% 7.28% 6.83% 8.11% 5.08%
Adjusted net profit margin 11.87% 7.07% 7.37% 8.15% 6.07%
Total Asset Turnover
Reported total asset turnover 1.16 1.09 1.14 1.19 1.19
Adjusted total asset turnover 1.17 1.09 1.15 1.21 1.21
Financial Leverage
Reported financial leverage — 83.02 — — —
Adjusted financial leverage — 251.90 — — —
Return on Equity (ROE)
Reported ROE — 656.29% — — —
Adjusted ROE — 1,949.20% — — —
Return on Assets (ROA)
Reported ROA 13.71% 7.90% 7.78% 9.66% 6.06%
Adjusted ROA 13.85% 7.74% 8.45% 9.82% 7.34%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. HCA Healthcare Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
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 adjusted net income divided by adjusted total assets. HCA Healthcare Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

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

Adjusted Net Profit Margin

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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
Revenues 58,752 51,533 51,336 46,677 43,614
Profitability Ratio
Net profit margin1 11.84% 7.28% 6.83% 8.11% 5.08%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to HCA Healthcare, Inc. 6,973 3,645 3,783 3,802 2,648
Revenues 58,752 51,533 51,336 46,677 43,614
Profitability Ratio
Adjusted net profit margin2 11.87% 7.07% 7.37% 8.15% 6.07%

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 Net profit margin = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Revenues
= 100 × 6,956 ÷ 58,752 = 11.84%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to HCA Healthcare, Inc. ÷ Revenues
= 100 × 6,973 ÷ 58,752 = 11.87%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. HCA Healthcare Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Total Asset Turnover

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 58,752 51,533 51,336 46,677 43,614
Adjusted total assets 50,347 47,105 44,758 38,729 36,083
Activity Ratio
Adjusted total asset turnover2 1.17 1.09 1.15 1.21 1.21

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 ÷ 50,347 = 1.17

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

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 50,347 47,105 44,758 38,729 36,083
Adjusted stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (1,328) 187 (3,108) (5,428) (7,316)
Solvency Ratio
Adjusted financial leverage2 — 251.90 — — —

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.
= 50,347 ÷ -1,328 = —

Adjusted Return on Equity (ROE)

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to HCA Healthcare, Inc. 6,973 3,645 3,783 3,802 2,648
Adjusted stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (1,328) 187 (3,108) (5,428) (7,316)
Profitability Ratio
Adjusted ROE2 — 1,949.20% — — —

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 × Adjusted net income attributable to HCA Healthcare, Inc. ÷ Adjusted stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 100 × 6,973 ÷ -1,328 = —

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to HCA Healthcare, Inc. 6,973 3,645 3,783 3,802 2,648
Adjusted total assets 50,347 47,105 44,758 38,729 36,083
Profitability Ratio
Adjusted ROA2 13.85% 7.74% 8.45% 9.82% 7.34%

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 × Adjusted net income attributable to HCA Healthcare, Inc. ÷ Adjusted total assets
= 100 × 6,973 ÷ 50,347 = 13.85%

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