Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2011
- Return on Assets (ROA) since 2011
- Total Asset Turnover since 2011
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Profitability Ratios (Summary)
HCA Healthcare Inc., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin exhibited a stable upward trend, increasing gradually from 83.23% in 2017 to 83.86% in 2021. This consistent improvement suggests effective control over direct costs relative to revenue, contributing positively to overall profitability.
- Operating Profit Margin
- Operating profit margin showed a moderate increase over the period, starting at 13.91% in 2017 and reaching a notable peak of 19.23% in 2021. The margin experienced some fluctuations, with a slight decline between 2018 and 2020, but the substantial rise in 2021 indicates enhanced operational efficiency or cost management during that year.
- Net Profit Margin
- The net profit margin reflected a variable but generally upward trajectory, moving from 5.08% in 2017 to 11.84% in 2021. There was an increase in 2018 followed by a slight decline in subsequent years until 2020, after which the margin improved significantly in 2021, pointing towards better bottom-line performance and possibly favorable tax or financing effects.
- Return on Equity (ROE)
- The available data presents an exceptionally high ROE value only for 2019 at 656.29%, with no reported values for other years. This anomalously high figure may indicate extraordinary events, such as significant one-time gains or accounting adjustments, and cannot reliably be used to assess the overall trend without additional context.
- Return on Assets (ROA)
- Return on assets showed an overall improving trend from 6.06% in 2017 to 13.71% in 2021. The indicator rose sharply in 2018 to 9.66%, then slightly decreased in 2019 and 2020 before surging significantly in 2021. This pattern suggests increasing asset utilization efficiency, particularly notable in the latest reported year.
Return on Sales
Return on Investment
Gross Profit Margin
HCA Healthcare Inc., gross profit margin 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) | ||||||
| Gross profit | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The company experienced consistent growth in revenues over the five-year period. Starting at approximately $43.6 billion in 2017, revenues increased steadily each year, reaching nearly $58.8 billion by the end of 2021. This growth represents a cumulative increase of around 35%, indicating a positive trend in sales performance.
- Gross Profit Trends
- Gross profit followed a similar upward trajectory as revenues. It rose from about $36.3 billion in 2017 to approximately $49.3 billion in 2021. This increase in gross profit corresponds with the revenue growth, reflecting effective cost management or pricing strategies contributing to higher absolute gross profit figures.
- Gross Profit Margin Trends
- The gross profit margin demonstrated a gradual improvement throughout the period. Beginning at 83.23% in 2017, the margin increased slightly each year, reaching 83.86% by 2021. This steady enhancement suggests a consistent level of efficiency in managing the cost of goods sold relative to revenues.
- Overall Insights
- The financial data indicates a stable and growing financial position with increasing revenues and gross profit. The consistent gross profit margin above 83% throughout the period highlights operational efficiency. The steady increase in gross profit coupled with expanding revenues suggests successful business execution and potentially expanding market share or improved service delivery.
Operating Profit Margin
HCA Healthcare Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income
- The operating income demonstrated a consistent upward trend over the five-year period. It increased from $6,065 million in 2017 to $11,298 million in 2021, showing significant growth particularly between 2020 and 2021. This represents an approximate 86% increase over the period, highlighting improving operational profitability and potentially more efficient management of core business activities.
- Revenues
- Revenues steadily increased from $43,614 million in 2017 to $58,752 million in 2021. The growth was moderate and consistent year-over-year, with a notable acceleration between 2020 and 2021. This progression reflects an expanding business scale or higher sales volume, contributing positively to overall financial health.
- Operating Profit Margin
- The operating profit margin showed some variability but generally improved, increasing from 13.91% in 2017 to 19.23% in 2021. The margin peaked in 2018 at 15.15%, slightly declined in 2019 and 2020, then significantly rose in 2021. This indicates enhanced operational efficiency or better cost control measures in the final year, allowing a higher proportion of revenue to translate into operating income.
- Overall Insights
- The financial data indicates positive performance trends over the five years, with steady growth in revenues and stronger gains in operating income and margins. The marked improvement in 2021 suggests strategic initiatives or market conditions favoring profitability gains. The data signals effective operational management and capacity to convert increasing revenues into higher profitability.
Net Profit Margin
HCA Healthcare Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to HCA Healthcare, Inc. | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | ||||||
| Net Profit Margin, 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 profit margin = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable
- The net income attributable to the company showed a generally increasing trend from 2017 through 2021. Starting at $2,216 million in 2017, it increased substantially to $3,787 million in 2018 before experiencing a slight decrease in 2019 to $3,505 million. It then rose slightly again in 2020 to $3,754 million and experienced a significant surge in 2021, reaching $6,956 million. This indicates improved profitability and possible operational efficiencies or other favorable factors in 2021.
- Revenues
- Revenues exhibited a steady upward trajectory over the five-year period. Beginning at $43,614 million in 2017, revenues increased each year, with figures of $46,677 million in 2018, $51,336 million in 2019, $51,533 million in 2020, and peaked at $58,752 million in 2021. This steady growth reflects consistent business expansion or increased market demand.
- Net Profit Margin
- The net profit margin showed variability but an overall positive trend. It started at 5.08% in 2017, rising sharply to 8.11% in 2018. A decline followed in 2019 to 6.83%, then a moderate increase to 7.28% in 2020, and a strong rise to 11.84% in 2021. The significant increase in 2021 suggests enhanced profitability relative to revenue, possibly due to cost control or higher-margin services.
- Summary
- Across the measured periods, both revenues and net income attributable increased, indicating overall growth. Despite minor fluctuations in net profit margin during 2019 and 2020, the margin improved markedly by 2021, highlighting improved profitability dynamics. The sharp increases in net income and margin in 2021 suggest some favorable operational or market conditions that year, making 2021 a notably strong financial performance period.
Return on Equity (ROE)
HCA Healthcare Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to HCA Healthcare, Inc. | ||||||
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROE, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROE, 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
ROE = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to HCA Healthcare, Inc.
- The net income showed a significant upward trend from 2017 to 2021. Starting at $2,216 million in 2017, it increased markedly to $3,787 million in 2018. There was a slight decline to $3,505 million in 2019, followed by a recovery to $3,754 million in 2020. The most notable increase occurred in 2021, with net income reaching $6,956 million, reflecting strong profitability growth in the final year of the period under review.
- Stockholders’ Equity (Deficit) Attributable to HCA Healthcare, Inc.
- Stockholders' equity exhibited a progressive improvement over the five-year span, though it remained predominantly negative. In 2017, the equity deficit stood at -$6,806 million and consistently improved each subsequent year: -$4,950 million in 2018, -$2,808 million in 2019, and crossing into positive territory with $572 million in 2020. However, in 2021, equity slipped back into a deficit of -$933 million. Overall, this pattern suggests a trend toward reducing negative equity, though with some volatility in the last year reported.
- Return on Equity (ROE)
- The available ROE data is limited to 2020, where it was exceptionally high at 656.29%. This unusually elevated figure may be attributed to the transition from negative to positive equity in that year, resulting in an amplified return ratio. The absence of ROE figures for other years limits the ability to analyze return trends over the entire period.
- Summary of Trends
- The data reveals a general improvement in profitability, as evidenced by a substantial increase in net income, especially from 2017 through 2021. Simultaneously, the company demonstrated efforts to improve its equity position, moving from a significant deficit toward positive equity by 2020, although this was not maintained in 2021. The atypical ROE value in 2020 reflects the impact of equity fluctuations on profitability metrics. Collectively, these trends indicate strengthening earnings power amid structural equity equity challenges with some variability in the latest year.
Return on Assets (ROA)
HCA Healthcare Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to HCA Healthcare, Inc. | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| ROA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| ROA, 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
ROA = 100 × Net income attributable to HCA Healthcare, Inc. ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to HCA Healthcare, Inc.
- The net income showed an overall upward trend from 2017 to 2021. Starting at $2,216 million in 2017, it increased substantially to $3,787 million in 2018. Although there was a slight decline in 2019 to $3,505 million, net income recovered in 2020 to $3,754 million and then experienced a significant rise in 2021, reaching $6,956 million. This indicates strong profitability growth especially in the latest year.
- Total Assets
- Total assets consistently increased over the five-year period. The asset base grew from $36,593 million in 2017 to $50,742 million in 2021. This steady increase suggests ongoing investment or expansion in the company’s asset holdings.
- Return on Assets (ROA)
- The ROA percentage presented fluctuations but an overall increasing trend from 2017 to 2021. Starting at 6.06% in 2017, ROA rose significantly to 9.66% in 2018, but declined to 7.78% in 2019. It slightly improved to 7.9% in 2020, followed by a notable jump to 13.71% in 2021. This pattern indicates improved efficiency in generating profit from assets, particularly pronounced in the most recent year.
- Summary
- The data reflects strong financial performance with expanding net income and asset base. Despite some fluctuations, profitability as measured by ROA improved substantially in 2021, suggesting enhanced operational efficiency or profitability. The trend suggests successful scaling and effective asset utilization over the period analyzed.