Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
HCA Healthcare Inc., long-term (investment) activity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio exhibits a slight downward trend from 2.44 in 2017 to a low of 2.22 in 2020, indicating a gradual decrease in efficiency in using fixed assets to generate sales over this period. However, there is a notable recovery back to 2.44 in 2021, suggesting an improvement in asset utilization efficiency towards the end of the period.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This ratio follows a similar pattern to the net fixed asset turnover, declining from 2.44 in 2017 to 2.04 in 2020. The decline is more pronounced after 2018, reflecting the impact of considering operating leases and right-of-use assets, which likely increased asset base and affected turnover rates. A partial recovery to 2.24 in 2021 indicates some improvement but remains below the 2017 level.
- Total asset turnover
- Total asset turnover remains stable at 1.19 from 2017 through 2018, then shows a moderate decrease down to 1.09 in 2020. This decline suggests a reduction in the efficiency with which the company uses all its assets to generate revenue. In 2021, there is a slight rebound to 1.16, indicating some improvement but overall asset efficiency remains below the earlier period's levels.
- Equity turnover
- Equity turnover data is largely absent, with only one reported value of 90.09, which appears to be an outlier or possibly a data entry error due to the lack of context and comparative values. Therefore, no meaningful trend or analysis can be derived from this figure.
Net Fixed Asset Turnover
HCA Healthcare Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
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 2021 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues have shown a steady increase over the five-year period. Starting from approximately 43.6 billion US dollars in 2017, revenue rose annually to reach nearly 58.8 billion US dollars by the end of 2021. The growth indicates consistent expansion in the company's sales or service delivery, with the most notable increase occurring between 2020 and 2021.
- Property and Equipment, Net
- The net value of property and equipment exhibited a consistent upward trend from 2017 to 2021. Beginning at roughly 17.9 billion US dollars in 2017, this asset category increased steadily each year, culminating at approximately 24.1 billion US dollars in 2021. This trend suggests ongoing investments in fixed assets, likely reflecting efforts to expand or upgrade operational capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures how efficiently fixed assets generate revenues, experienced a gradual decline from 2.44 in 2017 to 2.22 in 2020, indicating a slight decrease in asset utilization efficiency over this period. However, in 2021, the ratio rebounded to 2.44, returning to the initial level observed in 2017. This recovery may imply improved operational efficiency or better management of existing assets in the most recent year.
- Overall Observations
- The data reflect a company that steadily increased its asset base while achieving continuous revenue growth. Despite a temporary dip in asset turnover efficiency between 2017 and 2020, the efficiency ratio recovered in 2021. This pattern may indicate effective asset management strategies being implemented recently to support revenue growth alongside expanded fixed assets.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
HCA Healthcare Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Right-of-use operating lease assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
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 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues demonstrated a consistent upward trend over the five-year period from 2017 to 2021. Starting at $43,614 million in 2017, revenues increased annually, reaching $58,752 million in 2021. Notably, revenue growth was steady each year, with a slight deceleration in growth between 2019 and 2020, where the increase was marginal compared to previous years, before accelerating again in 2021.
- Property and equipment, net (including operating lease, right-of-use asset)
- The net value of property and equipment including operating lease and right-of-use assets showed consistent growth throughout the period. The figures rose from $17,895 million in 2017 to $26,176 million in 2021. The increase was particularly significant between 2018 and 2019, and growth continued steadily in subsequent years, indicating ongoing investment in fixed assets or capitalization of leasing rights.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio experienced a declining trend from 2.44 in 2017 to a low of 2.04 in 2020, suggesting that the efficiency in generating revenue from the fixed asset base decreased during this period. However, in 2021, the ratio improved to 2.24, indicating a partial recovery in asset utilization efficiency. Despite this improvement, the 2021 ratio had not returned to the levels observed in 2017 or 2018.
Total Asset Turnover
HCA Healthcare Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
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 2021 Calculation
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues showed a consistent upward trend over the five-year period. Starting at $43,614 million in 2017, revenues increased steadily each year, reaching $58,752 million by the end of 2021. The growth was particularly notable between 2020 and 2021, where revenues rose from $51,533 million to $58,752 million, indicating a strong recovery or expansion during this period.
- Total assets
- Total assets also exhibited a continuous increase from 2017 through 2021. Assets grew from $36,593 million in 2017 to $50,742 million in 2021. This steady growth in assets suggests ongoing investment in resources or acquisitions, supporting the company’s expanding operations over the years.
- Total asset turnover
- Total asset turnover, which measures efficiency in using assets to generate revenues, experienced a gradual decline from 1.19 in 2017 and 2018 to a low of 1.09 in 2020. However, it rebounded to 1.16 in 2021. This pattern indicates a slight reduction in asset utilization efficiency mid-period, followed by an improvement in the final year, possibly linked to the revenue growth observed in 2021.
Equity Turnover
HCA Healthcare Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
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 2021 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several noteworthy trends in various key indicators.
- Revenues
- Revenues demonstrate a consistent upward trend, increasing each year from 43,614 million US dollars in 2017 to 58,752 million US dollars in 2021. The growth is steady, with particularly notable increments between 2018 and 2019, and between 2020 and 2021, indicating an expansion in the company's operational scale or market demand.
- Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
- Stockholders' equity shows significant fluctuations. Initially, it reflects a sizeable deficit of 6,806 million US dollars at the end of 2017, which progressively decreases over the next two years, reaching a near break-even figure of 572 million US dollars in 2020. This turnaround suggests an improvement in the financial structure or profitability during that period. However, in 2021, the equity position deteriorates again into a deficit of 933 million US dollars, indicating renewed financial challenges or increased liabilities.
- Equity turnover
- Equity turnover data is largely absent, except for a single value of 90.09 reported in 2019. Due to the limited data points, it is difficult to interpret any meaningful trend or pattern for this metric.
Overall, the revenue growth trend is positive and robust, signaling strong business performance over the period. In contrast, the stockholders’ equity position experiences volatility, transitioning from a large deficit to a positive balance before reverting to a deficit, which may warrant further examination of underlying causes such as changes in liabilities, retained earnings, or other equity components. The scant data on equity turnover limits conclusions about asset efficiency relative to equity.