Name: HCA Healthcare Inc. (NYSE:HCA) | Common-Size Income Statement
Creator: Stock Analysis on Net

Common-Size Income Statement

HCA Healthcare Inc., common-size consolidated income statement

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Revenues	100.00%	100.00%	100.00%	100.00%	100.00%
Supplies	-16.14%	-16.24%	-16.52%	-16.55%	-16.77%
Gross profit	83.86%	83.76%	83.48%	83.45%	83.23%
Salaries and benefits	-45.58%	-46.33%	-45.89%	-45.90%	-45.99%
Other operating expenses	-16.95%	-18.06%	-18.47%	-18.44%	-18.46%
Depreciation and amortization	-4.86%	-5.28%	-5.06%	-4.88%	-4.89%
Gains (losses) on sales of facilities	2.76%	-0.01%	0.04%	0.92%	0.02%
Operating income	19.23%	14.08%	14.10%	15.15%	13.91%
Equity in earnings of affiliates	0.19%	0.10%	0.08%	0.06%	0.10%
Interest expense	-2.67%	-3.07%	-3.55%	-3.76%	-3.87%
Losses on retirement of debt	-0.02%	-0.57%	-0.41%	-0.02%	-0.09%
Income before income taxes	16.74%	10.54%	10.22%	11.43%	10.04%
Provision for income taxes	-3.59%	-2.02%	-2.14%	-2.03%	-3.76%
Net income	13.14%	8.51%	8.07%	9.40%	6.29%
Net income attributable to noncontrolling interests	-1.30%	-1.23%	-1.25%	-1.29%	-1.21%
Net income attributable to HCA Healthcare, Inc.	11.84%	7.28%	6.83%	8.11%	5.08%

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).

A comprehensive analysis of the common-size income statement from 2017 to 2021 reveals a consistent expansion in profitability margins and a strategic improvement in operational efficiency. Net income attributable to the parent company grew from 5.08% of revenues in 2017 to 11.84% in 2021, reflecting a significant strengthening of the bottom line relative to top-line growth.

Gross Margin and Direct Costs: Gross profit margins exhibited a steady upward trajectory, rising from 83.23% in 2017 to 83.86% in 2021. This improvement is primarily attributed to a gradual reduction in the cost of supplies, which declined from 16.77% to 16.14% of revenues over the analyzed period.
Operating Expense Management: Salaries and benefits remained relatively stable as a percentage of revenue, fluctuating within a narrow range between 45.58% and 46.33%. However, other operating expenses showed a notable downward trend, decreasing from 18.46% in 2017 to 16.95% in 2021. Depreciation and amortization remained consistent, averaging approximately 5% of revenues.
Operating Income Volatility and Growth: Operating income as a percentage of revenue experienced substantial growth, particularly in 2021, where it reached 19.23% compared to 13.91% in 2017. This surge was partially supported by a significant increase in gains on the sales of facilities, which peaked at 2.76% of revenues in 2021.
Financial Costs and Tax Obligations: A clear downward trend is observed in interest expenses, which fell from 3.87% of revenues in 2017 to 2.67% in 2021, suggesting a reduction in the relative debt burden or more favorable financing terms. The provision for income taxes remained relatively stable between 2% and 3.8% of revenues, though it saw a peak in 2021 at 3.59%.
Net Profitability Trends: The conversion of revenue to net income attributable to HCA Healthcare, Inc. demonstrated an overall positive trend. After a period of relative stability between 2018 and 2020, where margins hovered between 6.83% and 8.11%, a sharp increase occurred in 2021, resulting in a final net margin of 11.84%.

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