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.

Return on Capital (ROC)

Microsoft Excel

Return on Invested Capital (ROIC)

HCA Healthcare Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 9,050 5,607 5,941 5,865 4,332
Invested capital2 36,837 34,570 33,534 29,729 27,635
Performance Ratio
ROIC3 24.57% 16.22% 17.72% 19.73% 15.68%
Benchmarks
ROIC, Competitors4
Abbott Laboratories 11.30% 8.01% 6.47%
Cigna Group 6.88% 9.84% 6.50%
CVS Health Corp. 7.01% 6.63% 5.97%
Danaher Corp. 9.01% 7.43% 3.57%
Elevance Health Inc. 11.14% 8.67% 9.75%
Humana Inc. 10.35% 17.73% 16.04%
Intuitive Surgical Inc. 37.63% 25.62% 42.29%
Medtronic PLC 5.59% 6.20% 7.51% 3.82%
UnitedHealth Group Inc. 13.51% 13.84% 13.91%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 9,050 ÷ 36,837 = 24.57%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. HCA Healthcare Inc. ROIC deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Decomposition of ROIC

HCA Healthcare Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2021 24.57% = 19.56% × 1.59 × 78.74%
Dec 31, 2020 16.22% = 13.80% × 1.49 × 78.84%
Dec 31, 2019 17.72% = 13.96% × 1.53 × 82.91%
Dec 31, 2018 19.73% = 15.39% × 1.57 × 81.64%
Dec 31, 2017 15.68% = 14.13% × 1.58 × 70.31%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2021 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

HCA Healthcare Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 9,050 5,607 5,941 5,865 4,332
Add: Cash operating taxes2 2,444 1,505 1,225 1,319 1,829
Net operating profit before taxes (NOPBT) 11,493 7,112 7,166 7,184 6,161
 
Revenues 58,752 51,533 51,336 46,677 43,614
Profitability Ratio
OPM3 19.56% 13.80% 13.96% 15.39% 14.13%
Benchmarks
OPM, Competitors4
Abbott Laboratories 20.37% 16.05% 14.97%
Cigna Group 4.69% 7.72% 5.38%
CVS Health Corp. 4.32% 4.79% 4.69%
Danaher Corp. 27.65% 23.43% 18.74%
Elevance Health Inc. 6.54% 6.03% 6.47%
Humana Inc. 4.49% 6.64% 5.73%
Intuitive Surgical Inc. 33.56% 28.14% 34.15%
Medtronic PLC 16.48% 17.88% 22.11% 22.57%
UnitedHealth Group Inc. 8.33% 9.15% 8.41%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
OPM = 100 × NOPBT ÷ Revenues
= 100 × 11,493 ÷ 58,752 = 19.56%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. HCA Healthcare Inc. OPM deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Turnover of Capital (TO)

HCA Healthcare Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Revenues 58,752 51,533 51,336 46,677 43,614
Invested capital1 36,837 34,570 33,534 29,729 27,635
Efficiency Ratio
TO2 1.59 1.49 1.53 1.57 1.58
Benchmarks
TO, Competitors3
Abbott Laboratories 0.69 0.57 0.55
Cigna Group 1.90 1.70 1.62
CVS Health Corp. 2.22 1.96 1.83
Danaher Corp. 0.40 0.34 0.31
Elevance Health Inc. 2.14 2.13 1.86
Humana Inc. 2.70 3.48 3.41
Intuitive Surgical Inc. 1.27 0.98 1.35
Medtronic PLC 0.42 0.41 0.42 0.42
UnitedHealth Group Inc. 2.04 1.96 2.05

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).

1 Invested capital. See details »

2 2021 Calculation
TO = Revenues ÷ Invested capital
= 58,752 ÷ 36,837 = 1.59

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. HCA Healthcare Inc. TO deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Effective Cash Tax Rate (CTR)

HCA Healthcare Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 9,050 5,607 5,941 5,865 4,332
Add: Cash operating taxes2 2,444 1,505 1,225 1,319 1,829
Net operating profit before taxes (NOPBT) 11,493 7,112 7,166 7,184 6,161
Tax Rate
CTR3 21.26% 21.16% 17.09% 18.36% 29.69%
Benchmarks
CTR, Competitors4
Abbott Laboratories 20.05% 12.92% 21.15%
Cigna Group 23.01% 24.93% 25.68%
CVS Health Corp. 27.09% 29.36% 30.33%
Danaher Corp. 18.58% 7.07% 38.19%
Elevance Health Inc. 20.37% 32.42% 18.95%
Humana Inc. 14.62% 23.28% 17.80%
Intuitive Surgical Inc. 11.76% 6.67% 8.23%
Medtronic PLC 18.59% 14.72% 19.30% 59.94%
UnitedHealth Group Inc. 20.32% 22.88% 19.29%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,444 ÷ 11,493 = 21.26%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. HCA Healthcare Inc. CTR increased from 2019 to 2020 and from 2020 to 2021.