Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
HCA Healthcare Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Debt to Equity
- The debt to equity ratio data is available only from late 2020 onward, with a significant increase noted—from 54.2 to 125.8 between December 31, 2020, and March 31, 2021. The version including operating lease liability also shows a parallel increase from 57.13 to 132.8 over the same period, indicating a notable rise in leverage relative to shareholders' equity during early 2021.
- Debt to Capital
- From March 31, 2018, to March 31, 2022, the debt to capital ratio exhibits a gradual decline from 1.23 to a low near 0.98 by December 31, 2020, suggesting a reduction in reliance on debt financing. However, it recovers slightly afterward, reaching 1.06 by March 31, 2022. Including operating lease liabilities, the pattern is similar but with slightly higher values, indicating that lease obligations have a measurable effect on total capital structure.
- Debt to Assets
- The debt to assets ratio decreases from 0.89 in early 2018 to a minimum of approximately 0.61 to 0.65 during late 2020, implying an improvement in asset financing and potentially lower overall leverage tied to total asset base during this period. Nevertheless, from late 2020 to early 2022, this ratio rises again to 0.72, indicating a modest increase in debt relative to assets. The inclusion of operating lease liabilities consistently results in higher ratios, mirroring the impact seen in other metrics.
- Financial Leverage
- Financial leverage data is available only at the end of 2020 and early 2021. The ratio demonstrates a notable increase from 83.02 to 191.4, indicating a sharp rise in the use of debt relative to equity or assets during this timeframe.
- Interest Coverage
- The interest coverage ratio shows an improving trend from 3.85 in early 2018 to over 7 by early 2022. This increase signifies enhanced ability to meet interest obligations from operating earnings, reflecting either growth in earnings, reduction in interest expenses, or both. The sustained improvement suggests strengthening financial health and reduced risk in servicing debt.
Debt Ratios
Coverage Ratios
Debt to Equity
HCA Healthcare Inc., debt to equity calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Long-term debt due within one year | 1,486) | 237) | 250) | 253) | 234) | 209) | 172) | 163) | 162) | 145) | 148) | 2,073) | 3,796) | 788) | 191) | 1,692) | 1,697) | ||||||
| Long-term debt due after one year, less debt issuance costs and discounts | 36,210) | 34,342) | 32,049) | 32,319) | 30,838) | 30,795) | 30,792) | 30,779) | 34,699) | 33,577) | 34,097) | 34,120) | 31,019) | 32,033) | 32,916) | 31,500) | 31,594) | ||||||
| Total debt | 37,696) | 34,579) | 32,299) | 32,572) | 31,072) | 31,004) | 30,964) | 30,942) | 34,861) | 33,722) | 34,245) | 36,193) | 34,815) | 32,821) | 33,107) | 33,192) | 33,291) | ||||||
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (2,033) | (933) | (695) | (593) | 247) | 572) | (974) | (1,786) | (2,962) | (2,808) | (3,565) | (3,902) | (4,354) | (4,950) | (5,605) | (5,989) | (6,244) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | — | — | — | — | 125.80 | 54.20 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 0.48 | 0.50 | 0.53 | 0.55 | 0.55 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 0.65 | 0.64 | 0.64 | 0.66 | 0.69 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 0.50 | 0.51 | 0.60 | 0.60 | 0.57 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 0.65 | 0.64 | 0.67 | 0.70 | 0.70 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 37,696 ÷ -2,033 = —
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's balance sheet metrics over the observed periods.
- Total Debt
- The total debt demonstrates a relatively stable pattern from the first quarter of 2018 through the end of 2019, fluctuating slightly between approximately $32.8 billion and $36.2 billion. Beginning in early 2020, the debt levels initially declined, reaching a low around mid-2020 at approximately $30.9 billion, before rising again through 2022 to reach a peak of nearly $37.7 billion. This trajectory suggests increased borrowing or capital raising in the latest periods examined.
- Stockholders’ Equity Attributable to the Company
- Stockholders’ equity per the company's attribution improved notably from a significant deficit of approximately $6.2 billion in early 2018 to a near-balance point and slight surplus by the end of 2020, reaching a positive $572 million. However, this positive trend reversed starting in 2021, with equity declining back into a deficit, deepening to over $2 billion by March 2022. This shift indicates financial strain or increased losses impacting equity.
- Debt to Equity Ratio
- The reported debt to equity ratio indicates extreme leverage in the periods available. Particularly in late 2020 and early 2021, the ratio surged dramatically to values above 50 and even exceeding 125, reflecting the combination of high debt levels with minimal or negative equity. This heightened leverage points to elevated financial risk and potential vulnerability in capital structure during those times.
Overall, the company's financial position shows a long-term challenge with maintaining positive equity, offset by fluctuating debt levels. The peak in leverage ratios highlights periods of considerable balance sheet stress, which may warrant further investigation into operational performance, asset valuation changes, or extraordinary items influencing equity and liabilities.
Debt to Equity (including Operating Lease Liability)
HCA Healthcare Inc., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 39,486 ÷ -2,033 = —
The financial data reveals several notable trends and developments over the presented quarters for key balance sheet components.
- Total Debt (including operating lease liability)
-
This metric shows fluctuations over the reported periods but remains relatively elevated throughout. Initially, total debt hovered around the low 33,000 million USD mark from early 2018 through the end of 2019, with a minor decline towards late 2019. However, starting in early 2020, total debt exhibited increased volatility, dipping to approximately 32,473 million USD by mid-2020 before rising steadily to reach nearly 39,486 million USD as of the first quarter of 2022. This pattern indicates an overall upward trend in total liabilities, reflecting potential borrowing or lease financing activities undertaken by the company.
- Stockholders’ Equity (Deficit) attributable to HCA Healthcare, Inc.
-
The equity position has shown a marked improvement from a significant deficit at the beginning of the period to a positive value by the fourth quarter of 2020. Initially, the equity deficit decreased from -6,244 million USD in the first quarter of 2018 steadily through 2019 and into early 2020, reaching a low of -974 million USD by the third quarter of 2020. Subsequently, stockholders’ equity transitioned into positive territory, reaching 572 million USD by the end of 2020. However, this positive trend was short-lived, as equity values declined again through 2021 and early 2022, ending at a negative 2,033 million USD at the start of 2022. This movement reflects fluctuating financial health, influenced possibly by retained earnings, asset revaluations, or other comprehensive income components.
- Debt to Equity Ratio (including operating lease liability)
-
The ratio data is incomplete but shows an extremely high leverage position during the quarters for which it is available, with one recorded value at 57.13 and another peak at 132.8. These values underscore a scenario of significant financial leverage, where liabilities greatly exceed shareholder equity, consistent with the observed equity deficits. The absence of earlier ratios precludes a full trend analysis, but the available high ratios corroborate the company’s elevated risk exposure arising from its capital structure during the noted periods.
Overall, the data highlights a capital structure characterized by substantial debt levels relative to equity. Although there was a brief period of equity recovery in late 2020, the equity position remains negative thereafter, and leverage remains excessive. These conditions may indicate financial stress or strategic leverage employed by the company, suggesting the need for close monitoring of solvency and liquidity metrics in subsequent periods.
Debt to Capital
HCA Healthcare Inc., debt to capital calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Long-term debt due within one year | 1,486) | 237) | 250) | 253) | 234) | 209) | 172) | 163) | 162) | 145) | 148) | 2,073) | 3,796) | 788) | 191) | 1,692) | 1,697) | ||||||
| Long-term debt due after one year, less debt issuance costs and discounts | 36,210) | 34,342) | 32,049) | 32,319) | 30,838) | 30,795) | 30,792) | 30,779) | 34,699) | 33,577) | 34,097) | 34,120) | 31,019) | 32,033) | 32,916) | 31,500) | 31,594) | ||||||
| Total debt | 37,696) | 34,579) | 32,299) | 32,572) | 31,072) | 31,004) | 30,964) | 30,942) | 34,861) | 33,722) | 34,245) | 36,193) | 34,815) | 32,821) | 33,107) | 33,192) | 33,291) | ||||||
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (2,033) | (933) | (695) | (593) | 247) | 572) | (974) | (1,786) | (2,962) | (2,808) | (3,565) | (3,902) | (4,354) | (4,950) | (5,605) | (5,989) | (6,244) | ||||||
| Total capital | 35,663) | 33,646) | 31,604) | 31,979) | 31,319) | 31,576) | 29,990) | 29,156) | 31,899) | 30,914) | 30,680) | 32,291) | 30,461) | 27,871) | 27,502) | 27,203) | 27,047) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 1.06 | 1.03 | 1.02 | 1.02 | 0.99 | 0.98 | 1.03 | 1.06 | 1.09 | 1.09 | 1.12 | 1.12 | 1.14 | 1.18 | 1.20 | 1.22 | 1.23 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 0.33 | 0.34 | 0.35 | 0.35 | 0.35 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 0.39 | 0.39 | 0.39 | 0.40 | 0.41 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 0.34 | 0.34 | 0.37 | 0.37 | 0.36 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 0.39 | 0.39 | 0.40 | 0.41 | 0.41 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,696 ÷ 35,663 = 1.06
2 Click competitor name to see calculations.
- Total Debt
- The total debt levels exhibit fluctuations over the analyzed periods. From March 2018 to December 2018, total debt showed a gradual decline, decreasing from approximately 33.3 billion to 32.8 billion USD. Following this period, a general upward trend is observed through March 2022, with some volatility during 2020. Debt reached its highest point in March 2022 at around 37.7 billion USD, indicating a significant increase compared to the initial period.
- Total Capital
- Total capital demonstrated an overall upward trajectory across the periods, growing from approximately 27.0 billion USD in March 2018 to 35.7 billion USD by March 2022. Intermediate periods reflected some variability, notably a dip in mid-2020, likely connected to external economic conditions during that timeframe. However, the general trend indicates capital expansion over the observation window.
- Debt to Capital Ratio
- The debt to capital ratio started at a high level above 1.2 in early 2018, indicating that total debt exceeded total capital at that time. Over the subsequent years, this ratio trended downward steadily, reaching below 1.0 by late 2020, which suggests a relative reduction of debt compared to capital. However, from 2021 onward, the ratio increased slightly again, remaining just above 1.0 through March 2022. This pattern signals a move toward greater balance between debt and capital, though debt still slightly exceeds capital based on this metric.
- Overall Insights
- The data reveals a company managing substantial debt levels with efforts to balance debt against capital structure over time. The temporary reduction in debt to capital ratio around 2020 may reflect strategic deleveraging or capital increases amid economic uncertainty. Subsequent rises imply renewed debt accumulation or moderated capital growth. The consistent increase in total capital alongside rising debt suggests ongoing investment or acquisition activities financed in part by debt. Continued monitoring of the debt to capital ratio is essential to assess leverage risk and financial health.
Debt to Capital (including Operating Lease Liability)
HCA Healthcare Inc., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 39,486 ÷ 37,453 = 1.05
- Total Debt (Including Operating Lease Liability)
- The total debt level showed a modest fluctuation over the observed periods. Initially, it hovered around 33,200 million USD during 2018, rising notably in the first half of 2019 to peak near 37,653 million USD in June 2019. This was followed by a gradual decline towards the end of 2019 and into 2020, with values dropping to approximately 32,473 million USD in June 2020. Subsequently, debt levels trended upwards once more, reaching a high of 39,486 million USD by March 31, 2022, indicating an increasing reliance on debt financing in recent periods.
- Total Capital (Including Operating Lease Liability)
- Total capital demonstrated a generally rising trajectory, starting at roughly 27,000 million USD in early 2018 and gradually increasing through to early 2019, reaching over 33,700 million USD by mid-2019. Despite some minor dips and fluctuations, total capital maintained an upward trend into 2020 and 2021, ultimately reaching about 37,453 million USD by the first quarter of 2022. This progression suggests an expansion in the overall capital base supporting the company’s operations.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio exhibited a decreasing trend from above 1.20 in early 2018 to under 1.00 by late 2020, reflecting an improving balance between debt and total capital during this period. This decrease implies a relative reduction in debt compared to total capital. However, starting in 2021, the ratio stabilized slightly above 1.00, showing a modest increase towards 1.05 by March 2022. This indicates a slight shift back to higher leverage, suggesting cautious management of capital structure with a controlled increase in debt proportion.
- Overall Insights
- The financial data reveals an adaptive capital structure with periods of both debt reduction and increases, corresponding to different strategic or operational phases. The gradual increase in total capital indicates sustained investment or growth activities. Meanwhile, the reduction in the debt-to-capital ratio until late 2020 suggests efforts to deleverage or strengthen the equity base. In contrast, the increasing debt levels and ratio from 2021 onward may reflect renewed borrowing, possibly to support expansions or other capital-intensive initiatives amidst evolving market conditions.
Debt to Assets
HCA Healthcare Inc., debt to assets calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Long-term debt due within one year | 1,486) | 237) | 250) | 253) | 234) | 209) | 172) | 163) | 162) | 145) | 148) | 2,073) | 3,796) | 788) | 191) | 1,692) | 1,697) | ||||||
| Long-term debt due after one year, less debt issuance costs and discounts | 36,210) | 34,342) | 32,049) | 32,319) | 30,838) | 30,795) | 30,792) | 30,779) | 34,699) | 33,577) | 34,097) | 34,120) | 31,019) | 32,033) | 32,916) | 31,500) | 31,594) | ||||||
| Total debt | 37,696) | 34,579) | 32,299) | 32,572) | 31,072) | 31,004) | 30,964) | 30,942) | 34,861) | 33,722) | 34,245) | 36,193) | 34,815) | 32,821) | 33,107) | 33,192) | 33,291) | ||||||
| Total assets | 52,208) | 50,742) | 49,562) | 48,164) | 47,277) | 47,490) | 51,016) | 48,709) | 45,421) | 45,058) | 43,912) | 45,449) | 43,379) | 39,207) | 38,044) | 37,742) | 37,299) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.72 | 0.68 | 0.65 | 0.68 | 0.66 | 0.65 | 0.61 | 0.64 | 0.77 | 0.75 | 0.78 | 0.80 | 0.80 | 0.84 | 0.87 | 0.88 | 0.89 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 0.23 | 0.24 | 0.25 | 0.25 | 0.25 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 0.23 | 0.24 | 0.23 | 0.24 | 0.24 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 0.28 | 0.28 | 0.31 | 0.31 | 0.31 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,696 ÷ 52,208 = 0.72
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's leverage and asset base over the examined period.
- Total Debt
- Total debt remained relatively stable from early 2018 through 2019, fluctuating between approximately $32.8 billion and $36.2 billion. However, starting in 2020, the debt level showed a marked decrease, reaching a low near $30.9 billion by mid-2020. This was followed by a gradual increase through 2021 and early 2022, culminating in a higher debt load of approximately $37.7 billion by the first quarter of 2022, the highest level within the observed timeframe.
- Total Assets
- Total assets showed a consistent upward trajectory throughout the period. Starting near $37.3 billion in early 2018, assets grew steadily each quarter to surpass $52.2 billion by the first quarter of 2022. The growth was particularly pronounced during 2020, where assets increased significantly despite the challenging economic environment in that year. This upward trend suggests ongoing investments and expansion of the company's asset base.
- Debt to Assets Ratio
- The debt to assets ratio exhibited a clear declining trend from 0.89 in March 2018 to a low of about 0.61 in mid-2020, reflecting a period during which asset growth outpaced debt accumulation. From mid-2020 onward, the ratio experienced a moderate increase, rising to approximately 0.72 by the first quarter of 2022. This indicates a relative increase in leverage as debt levels rose faster than asset growth in the later periods.
In summary, the data indicates that the company initially pursued a deleveraging strategy up until mid-2020, reducing its debt burden relative to assets. Subsequently, the pattern reversed to some extent, with increased borrowing contributing to a higher leverage ratio by early 2022, despite continued asset growth. The fluctuations suggest strategic adjustments in capital structure, possibly influenced by broader economic conditions and corporate financing needs during the period.
Debt to Assets (including Operating Lease Liability)
HCA Healthcare Inc., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 39,486 ÷ 52,208 = 0.76
- Total debt (including operating lease liability)
- The total debt level fluctuated moderately over the observed period, starting at US$33.3 billion in the first quarter of 2018 and gradually increasing to approximately US$39.5 billion by the first quarter of 2022. There was a noticeable peak around the first quarter of 2019 at US$36.3 billion, followed by some declines and rebounds. The strongest decrease in total debt occurred in mid-2020, coinciding with broader market disruptions, before trending upwards again towards the end of 2021 and into early 2022.
- Total assets
- Total assets demonstrated a persistent upward trend throughout the periods reviewed. Beginning around US$37.3 billion in the first quarter of 2018, assets increased steadily with some volatility, reaching over US$52.2 billion by the first quarter of 2022. This consistent growth in assets reflects ongoing expansion efforts or acquisitions, albeit with some fluctuations in the fourth quarter of 2020, where a temporary decline was observed.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio showed a decreasing trend from 0.89 in the first quarter of 2018 to a low of 0.64 in mid-2020, indicating an improvement in the company's leverage position relative to assets. This reduction suggests either a stronger asset base, a decline in debt, or a combination of both during this period. However, post mid-2020, the ratio experienced an upward correction, rising back to 0.76 by the first quarter of 2022. This increase implies a relative rise in debt levels compared to assets, suggesting a slight deterioration in leverage or a more aggressive use of debt financing.
- Summary of financial leverage and asset growth
- Overall, the company demonstrated growth in total assets accompanied by fluctuating total debt levels. The leverage ratio improved markedly during the early pandemic period, likely due to asset growth outpacing debt increases or proactive debt reduction measures. This was followed by a moderation of leverage as debt levels rose more significantly relative to asset growth in the most recent periods. The pattern indicates active financial management to balance expansion with leverage risks, though the increasing debt to asset ratio toward the end of the timeline may warrant monitoring for potential impact on financial stability.
Financial Leverage
HCA Healthcare Inc., financial leverage calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 52,208) | 50,742) | 49,562) | 48,164) | 47,277) | 47,490) | 51,016) | 48,709) | 45,421) | 45,058) | 43,912) | 45,449) | 43,379) | 39,207) | 38,044) | 37,742) | 37,299) | ||||||
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (2,033) | (933) | (695) | (593) | 247) | 572) | (974) | (1,786) | (2,962) | (2,808) | (3,565) | (3,902) | (4,354) | (4,950) | (5,605) | (5,989) | (6,244) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | — | — | — | — | 191.40 | 83.02 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 2.09 | 2.10 | 2.14 | 2.17 | 2.17 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 2.79 | 2.70 | 2.74 | 2.75 | 2.83 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 1.13 | 1.14 | 1.13 | 1.13 | 1.14 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 1.78 | 1.81 | 1.92 | 1.91 | 1.87 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 3.04 | 2.96 | 3.03 | 3.05 | 3.09 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 52,208 ÷ -2,033 = —
2 Click competitor name to see calculations.
The quarterly financial data reveals several key trends in the company's financial position over the reviewed periods.
- Total Assets
- The total assets exhibit an overall upward trajectory from March 31, 2018, through March 31, 2022. Starting at approximately $37.3 billion, total assets increased steadily each quarter, reaching over $52.2 billion by the end of the period. This consistent growth indicates ongoing asset accumulation or valuation increases.
- Stockholders’ Equity (Deficit) Attributable to HCA Healthcare, Inc.
- Stockholders’ equity shows significant improvement over the period despite remaining negative in some quarters. Initially, the equity deficit was quite large (around -$6.2 billion) but gradually improved, narrowing to a deficit of about -$2.0 billion by March 31, 2022. Notably, there was a period around late 2020 to early 2021 where equity briefly turned positive, reaching $572 million, before moving back into negative territory, though less severe than in earlier years. This suggests fluctuations in retained earnings, comprehensive income, or other equity components impacting shareholders’ equity.
- Financial Leverage
- Financial leverage data is limited and inconsistently reported, with a ratio value of 83.02 and then a notably higher 191.4 recorded only during 2020. The absence of continuous data limits precise trend analysis. However, the high ratios observed suggest periods of substantial reliance on debt relative to equity, potentially linked to the fluctuations in stockholders’ equity.
- Overall Financial Position Insights
- The growth in total assets combined with intermittent improvements and decline in stockholders’ equity indicates a complex financial structure with varying leverage levels. The company's asset base is expanding, but negative equity suggests cumulative losses or significant intangible asset recognition affecting net asset value. The volatile changes in equity and leverage ratios emphasize the need to monitor capital structure and solvency risks closely.
Interest Coverage
HCA Healthcare Inc., interest coverage calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to HCA Healthcare, Inc. | 1,273) | 1,814) | 2,269) | 1,450) | 1,423) | 1,426) | 668) | 1,079) | 581) | 1,071) | 612) | 783) | 1,039) | 1,064) | 759) | 820) | 1,144) | ||||||
| Add: Net income attributable to noncontrolling interest | 192) | 191) | 203) | 214) | 157) | 268) | 111) | 137) | 117) | 202) | 152) | 144) | 142) | 181) | 137) | 146) | 138) | ||||||
| Add: Income tax expense | 349) | 581) | 685) | 453) | 393) | 378) | 209) | 344) | 112) | 334) | 215) | 271) | 279) | 244) | 173) | 272) | 257) | ||||||
| Add: Interest expense | 408) | 398) | 398) | 386) | 384) | 383) | 385) | 388) | 428) | 438) | 448) | 477) | 461) | 446) | 442) | 436) | 431) | ||||||
| Earnings before interest and tax (EBIT) | 2,222) | 2,984) | 3,555) | 2,503) | 2,357) | 2,455) | 1,373) | 1,948) | 1,238) | 2,045) | 1,427) | 1,675) | 1,921) | 1,935) | 1,511) | 1,674) | 1,970) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 7.08 | 7.28 | 7.01 | 5.65 | 5.28 | 4.43 | 4.03 | 3.91 | 3.57 | 3.88 | 3.80 | 3.86 | 3.94 | 4.04 | 4.00 | 3.86 | 3.85 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 18.10 | 16.41 | 16.38 | 14.28 | 12.77 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 11.01 | 10.93 | 10.04 | 8.03 | 9.09 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 5.65 | 5.21 | 3.68 | 4.02 | 6.60 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 14.26 | 14.44 | 13.46 | 13.03 | 14.88 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Interest coverage
= (EBITQ1 2022
+ EBITQ4 2021
+ EBITQ3 2021
+ EBITQ2 2021)
÷ (Interest expenseQ1 2022
+ Interest expenseQ4 2021
+ Interest expenseQ3 2021
+ Interest expenseQ2 2021)
= (2,222 + 2,984 + 3,555 + 2,503)
÷ (408 + 398 + 398 + 386)
= 7.08
2 Click competitor name to see calculations.
- Earnings Before Interest and Tax (EBIT)
- The EBIT shows notable variability across the quarters, with an overall upward trend from 2018 through to early 2022. Initially, values fluctuate around the 1500 to 2000 million US dollar range, with periodic dips such as in the September quarters of 2018 and 2019. There is a significant increase towards the end of 2020 and throughout 2021, peaking markedly in December 2021 at 3555 million US dollars. Following this peak, EBIT decreases but remains elevated relative to earlier years, standing at 2222 million US dollars by March 2022.
- Interest Expense
- The interest expense remains relatively stable over the period examined, fluctuating modestly between 383 and 477 million US dollars. There is no discernible long-term upward or downward trend. The expense slightly decreases during 2020 but shows a minor increase towards early 2022, ending at 408 million US dollars.
- Interest Coverage Ratio
- The interest coverage ratio demonstrates an overall improvement from 2018 through to 2022, indicating enhanced ability to cover interest expenses with EBIT. Starting at approximately 3.85 in early 2018, the ratio gradually increases, with some fluctuations in the interim. The most pronounced improvement is observed from late 2020, where the ratio rises sharply from around 4.43 to a peak exceeding 7.2 in late 2021, maintaining a strong position into early 2022 at over 7.0. This suggests a substantial strengthening in the company's earnings capacity relative to its interest obligations.
- Overall Insights
- The financial metrics reflect a company experiencing growth in operating earnings while maintaining relatively stable interest expenses. The sharp increase in EBIT and corresponding improvement in interest coverage towards the end of 2020 and through 2021 imply enhanced operational performance and financial health. The stability in interest expenses alongside rising EBIT results in greater coverage capacity, reducing financial risk related to debt servicing. Notably, the decline in EBIT after its peak at the end of 2021 still leaves earnings at a solid level compared to previous years, suggesting sustained operational strength.