Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
HCA Healthcare Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin exhibited a consistent upward trend over the observed periods, ranging from 83.26% in March 2018 to 83.96% in March 2022. The margin remained relatively stable, with minimal fluctuations, indicating steady control over production costs relative to revenue.
- Operating Profit Margin
- The operating profit margin showed more variability compared to the gross margin. Initially, it hovered around 14.7% to 15.1% from early 2018 through the end of 2019. A decline was observed reaching a low of 13.26% in March 2020, likely reflecting external challenges during that period. Subsequently, the margin recovered notably, increasing steadily from 14.22% in June 2020 to a peak of 19.23% in December 2021, before slightly moderating to 18.71% in March 2022. This suggests improved operational efficiency and/or cost management post-2020.
- Net Profit Margin
- The net profit margin displayed a generally positive trajectory, beginning at 6.08% in March 2018 and rising to a level exceeding 11% by late 2021. Despite a dip to 5.9% in March 2020, a rapid recovery and consistent growth followed, peaking at 11.84% in December 2021, with a marginal decrease to 11.4% in March 2022. This pattern reflects strengthening profitability after the early 2020 downturn, potentially linked to financial strategies or external market recovery.
- Return on Equity (ROE)
- Data for return on equity is largely absent, with anomalously high values reported in the mid-2021 period, specifically 656.29% and 1860.73%, which are not aligned with typical financial ratios. Due to insufficient and irregular data, no reliable trend analysis on ROE can be provided.
- Return on Assets (ROA)
- Return on assets showed an upward trend, with some variability. Starting at 7.24% in March 2018, ROA increased steadily, albeit with occasional minor dips, reaching 13.04% by March 2022. There was a notable decline during the early 2020 period, descending to around 6.66% to 7.90% range, but this was followed by robust recovery and growth through 2021 into early 2022. This indicates improved asset utilization and profitability over the long term.
Return on Sales
Return on Investment
Gross Profit Margin
HCA Healthcare Inc., gross profit margin 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) | |||||||||||||||||||||||
| Gross profit | 12,624) | 12,650) | 12,813) | 12,055) | 11,753) | 11,923) | 11,183) | 9,320) | 10,738) | 11,291) | 10,604) | 10,484) | 10,476) | 10,272) | 9,561) | 9,612) | 9,508) | ||||||
| Revenues | 14,945) | 15,064) | 15,276) | 14,435) | 13,977) | 14,293) | 13,311) | 11,068) | 12,861) | 13,523) | 12,694) | 12,602) | 12,517) | 12,274) | 11,451) | 11,529) | 11,423) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 83.96% | 83.86% | 83.72% | 83.75% | 83.91% | 83.76% | 83.79% | 83.66% | 83.43% | 83.48% | 83.53% | 83.52% | 83.57% | 83.45% | 83.32% | 83.29% | 83.26% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 52.44% | 52.21% | 52.01% | 50.69% | 51.25% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 16.89% | 17.09% | 17.30% | 17.57% | 19.38% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 68.84% | 69.32% | 69.12% | 68.69% | 66.48% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 66.53% | 65.19% | 63.85% | 64.57% | 65.76% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 23.31% | 23.60% | 23.75% | 23.80% | 25.79% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
Gross profit margin = 100
× (Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021
+ Gross profitQ2 2021)
÷ (RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021
+ RevenuesQ2 2021)
= 100 × (12,624 + 12,650 + 12,813 + 12,055)
÷ (14,945 + 15,064 + 15,276 + 14,435)
= 83.96%
2 Click competitor name to see calculations.
The financial data reveals several key trends in the quarterly performance over the observed periods.
- Gross Profit
- The gross profit shows a general upward trend from March 2018 through March 2022. Starting at approximately $9.5 billion in the first quarter of 2018, it gradually increased to a peak above $12.8 billion in the last quarter of 2021 before slightly declining to around $12.6 billion in the first quarter of 2022. Notably, there was a significant dip in mid-2020, with gross profit falling below $10 billion, which could be associated with external economic or operational challenges during that period. However, subsequent quarters reflect a strong recovery and continued growth.
- Revenues
- Revenues follow a similar pattern to gross profit, with consistent growth over the timeframe. The revenue rose steadily from about $11.4 billion in early 2018 to nearly $15.3 billion by late 2021. Like gross profit, revenues experienced a downturn during mid-2020, dropping to approximately $11.1 billion, a notable decrease compared to preceding quarters. This dip appears temporary, with revenues recovering robustly in the latter part of 2020 and continuing to increase through early 2022, albeit with some minor fluctuations.
- Gross Profit Margin
- The gross profit margin remained relatively stable throughout the periods, maintaining a narrow range between approximately 83.2% and 84.0%. This stability indicates consistent cost management relative to revenues, even amidst fluctuations in absolute revenue and gross profit values. The margin slightly increased over time, from the low 83.2% range in 2018 to close to 84.0% by early 2022, suggesting improved efficiency or favorable pricing strategies contributing to profitability.
Overall, the company demonstrates resilience and sustained growth in key financial indicators despite experiencing a temporary decline in mid-2020. The stability of the gross profit margin alongside increasing revenues and gross profit underscores effective operational management and the ability to recover from short-term challenges. Continued monitoring of these trends would be advisable to confirm ongoing performance consistency.
Operating Profit Margin
HCA Healthcare Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 2,211) | 2,949) | 3,520) | 2,493) | 2,336) | 2,449) | 1,333) | 1,947) | 1,526) | 2,025) | 1,634) | 1,667) | 1,910) | 1,931) | 1,511) | 1,667) | 1,961) | ||||||
| Revenues | 14,945) | 15,064) | 15,276) | 14,435) | 13,977) | 14,293) | 13,311) | 11,068) | 12,861) | 13,523) | 12,694) | 12,602) | 12,517) | 12,274) | 11,451) | 11,529) | 11,423) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 18.71% | 19.23% | 18.62% | 15.37% | 15.32% | 14.08% | 13.46% | 14.22% | 13.26% | 14.10% | 14.26% | 14.37% | 14.69% | 15.15% | 15.10% | 14.73% | 14.75% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 20.73% | 19.56% | 20.04% | 18.46% | 17.97% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 5.10% | 5.15% | 4.91% | 3.68% | 4.83% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 30.69% | 31.89% | 32.55% | 31.27% | 26.01% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 14.78% | 14.89% | 11.44% | 12.77% | 14.25% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 8.19% | 8.40% | 7.91% | 7.73% | 9.24% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
Operating profit margin = 100
× (Operating incomeQ1 2022
+ Operating incomeQ4 2021
+ Operating incomeQ3 2021
+ Operating incomeQ2 2021)
÷ (RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021
+ RevenuesQ2 2021)
= 100 × (2,211 + 2,949 + 3,520 + 2,493)
÷ (14,945 + 15,064 + 15,276 + 14,435)
= 18.71%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited a generally upward trajectory from early 2018 through late 2019, increasing from approximately $11.4 billion to $13.5 billion by the fourth quarter of 2019. However, there was a notable decline in revenues during the first half of 2020, reaching a low point of around $11.1 billion in the second quarter, likely reflecting external economic pressures. Subsequently, revenues rebounded and continued to grow steadily through 2021 and into early 2022, peaking near $15.3 billion in the third quarter of 2021 before slightly tapering to approximately $14.9 billion by the first quarter of 2022.
- Operating Income Patterns
- Operating income displayed more volatility across the observed periods. From early 2018 to the end of 2019, operating income fluctuated modestly, with values ranging mostly between $1.5 billion and $2.0 billion. There was a pronounced dip during the first three quarters of 2020, bottoming at $1.3 billion in the third quarter, before rebounding sharply to a peak of $2.4 billion by the end of 2020. Throughout 2021, operating income continued to rise substantially, reaching a high point of approximately $3.5 billion in the third quarter, before decreasing to around $2.2 billion in the first quarter of 2022.
- Operating Profit Margin Analysis
- The operating profit margin remained relatively stable at around 14–15% from 2018 through 2019, with a slight declining trend toward the end of 2019, dropping to about 14.1%. During 2020, margins experienced some fluctuation, with a low near 13.3% in the first quarter and recovery toward 14% by the end of the year. Notably, from early 2021 onwards, the operating profit margin increased substantially, reaching a peak of over 19% in the fourth quarter of 2021. This elevated margin level persisted into early 2022, although there was a slight decline in the first quarter.
- General Observations and Insights
- The financial data suggest resilience and a strong recovery following a period of revenue and income contraction in the first half of 2020, likely associated with broader economic disruptions. The substantial increase in operating profit margin during 2021 indicates improved operational efficiency or cost control during this period. However, the decrease in operating income in the first quarter of 2022, despite relatively stable revenues and margins, may warrant further investigation into seasonal factors or emerging challenges. Overall, the company shows a pattern of growth with intermittent volatility reflective of external economic conditions.
Net Profit Margin
HCA Healthcare Inc., net profit margin calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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) | ||||||
| Revenues | 14,945) | 15,064) | 15,276) | 14,435) | 13,977) | 14,293) | 13,311) | 11,068) | 12,861) | 13,523) | 12,694) | 12,602) | 12,517) | 12,274) | 11,451) | 11,529) | 11,423) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 11.40% | 11.84% | 11.33% | 8.87% | 8.73% | 7.28% | 6.70% | 6.67% | 5.90% | 6.83% | 6.98% | 7.46% | 7.71% | 8.11% | 6.96% | 6.33% | 6.08% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 17.35% | 16.42% | 17.12% | 15.85% | 15.33% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 4.37% | 4.46% | 4.17% | 3.32% | 3.82% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 27.84% | 29.85% | 30.78% | 31.43% | 25.78% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 12.29% | 11.97% | 10.36% | 12.69% | 15.80% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 5.91% | 6.06% | 5.56% | 5.37% | 6.46% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
Net profit margin = 100
× (Net income attributable to HCA Healthcare, Inc.Q1 2022
+ Net income attributable to HCA Healthcare, Inc.Q4 2021
+ Net income attributable to HCA Healthcare, Inc.Q3 2021
+ Net income attributable to HCA Healthcare, Inc.Q2 2021)
÷ (RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021
+ RevenuesQ2 2021)
= 100 × (1,273 + 1,814 + 2,269 + 1,450)
÷ (14,945 + 15,064 + 15,276 + 14,435)
= 11.40%
2 Click competitor name to see calculations.
An examination of the financial indicators over the observed periods reveals notable fluctuations and trends in profitability and revenue generation.
- Net Income Attributable to the Company
-
The net income figures exhibit volatility across quarters with an initial decrease seen in mid-2018 compared to early 2018. After a dip in the third quarter of 2019, there is a marked rebound in the fourth quarter of the same year. The year 2020 presents mixed results with notable recovery towards the last quarter. Starting from March 2021, net income shows a strong upward movement culminating in a peak by September 2021, followed by a decline thereafter into early 2022. This pattern indicates periods of profitability fluctuation that may be influenced by external factors or operational changes.
- Revenues
-
Revenue trends display general growth with some cyclical fluctuations. From early 2018 to the end of 2019, revenues increased steadily, reflecting expansion or enhanced market performance. A decline is evident in the mid-2020 quarters, likely indicative of broader economic or sector-specific challenges. However, revenues recover vigorously by the end of 2020 and continue ascending through 2021, reaching the highest values in the observed timeframe before slightly dropping as of the first quarter of 2022.
- Net Profit Margin
-
The net profit margin percentage shows an upward trend with moderate variations. Starting near 6% in early 2018, the margin increased to above 8% by the end of 2018. A slight softening occurs through 2019 but remains generally stable around 7%. During 2020, there is a dip followed by recovery exceeding previous margins during 2021, peaking above 11%, which indicates improved profitability efficiency relative to revenue. The margin remains robust into early 2022, signaling sustained profitability improvements despite some decrease in absolute net income.
Overall, the data reflects a dynamic operating environment with periods of revenue contraction and expansion impacting net income. Profitability, as measured by net profit margin, exhibits resilience and a notable improvement in the latest periods, suggesting operational efficiency gains or favorable cost management. The correlation between rising margins and fluctuating net income highlights the importance of both revenue growth and cost control in financial performance.
Return on Equity (ROE)
HCA Healthcare Inc., ROE 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) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | — | — | — | — | 1,860.73% | 656.29% | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 21.82% | 19.75% | 21.04% | 18.86% | 17.06% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 17.36% | 16.93% | 15.44% | 12.10% | 13.92% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 13.58% | 14.32% | 14.80% | 14.97% | 11.56% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 7.54% | 7.01% | 5.70% | 7.05% | 8.77% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 23.98% | 24.09% | 21.95% | 21.03% | 25.42% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
ROE = 100
× (Net income attributable to HCA Healthcare, Inc.Q1 2022
+ Net income attributable to HCA Healthcare, Inc.Q4 2021
+ Net income attributable to HCA Healthcare, Inc.Q3 2021
+ Net income attributable to HCA Healthcare, Inc.Q2 2021)
÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 100 × (1,273 + 1,814 + 2,269 + 1,450)
÷ -2,033 = —
2 Click competitor name to see calculations.
The financial data exhibits distinct fluctuations and trends over the observed quarterly periods.
- Net Income Attributable to HCA Healthcare, Inc. (US$ in millions)
- The net income shows variability with periods of both decline and growth. From early 2018 to the end of 2019, net income fluctuated between approximately 580 million and 1,070 million, showing some seasonality. Notably, in 2020, there is a marked increase in the fourth quarter, reaching 1,426 million from a lower third quarter figure of 668 million. This upward trend continues into 2021, with net income peaking at 2,269 million in the third quarter before falling to 1,814 million at the end of the year and declining further to 1,273 million in the first quarter of 2022. Overall, this indicates a period of recovery and growth in net income after mid-2020, possibly reflecting operational improvements or market dynamics impacting revenue and expenses.
- Stockholders’ Equity Attributable to HCA Healthcare, Inc. (US$ in millions)
- Stockholders’ equity shows a persistent negative balance throughout the entire period, indicating a deficit. However, there is a clear trend toward reduction in the deficit from March 2018 (-6,244 million) to a positive territory briefly in the fourth quarter of 2020 (572 million). This improvement likely signifies equity injections, retained earnings, or other equity-related transactions improving the balance sheet. After this peak, equity reverts to negative values from early 2021 onward, progressively declining again to -2,033 million by March 2022. This volatility in equity levels suggests fluctuating capital structure or losses impacting retained earnings over time.
- Return on Equity (ROE, %)
- Return on equity figures are incomplete for the periods shown but reveal exceedingly high values in the available quarters of 2020 and 2021 (656.29% and 1,860.73% respectively). These unusually high percentages are likely a result of the previously noted low or near-zero stockholders’ equity values, which mathematically inflate the ROE. Such levels indicate that while the company generated significant net income relative to equity, the negative or minimal equity base renders this ratio less reliable as an indicator of profitability performance in these periods.
In summary, the net income demonstrates a recovery and growth trend after mid-2020, reaching new highs in 2021 before moderating in early 2022. The stockholders’ equity position, despite improvements in late 2020, remains negative overall with significant fluctuations, indicating persistent capital challenges. The ROE values reported are disproportionately high due to the equity base situation, implying caution in their interpretation.
Return on Assets (ROA)
HCA Healthcare Inc., ROA 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) | ||||||
| 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) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 13.04% | 13.71% | 13.25% | 10.31% | 9.72% | 7.90% | 6.66% | 6.86% | 6.71% | 7.78% | 7.97% | 8.02% | 8.49% | 9.66% | 8.40% | 7.59% | 7.24% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | 10.44% | 9.40% | 9.82% | 8.70% | 7.86% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | 6.21% | 6.26% | 5.63% | 4.40% | 4.93% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | 12.02% | 12.58% | 13.06% | 13.20% | 10.17% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | 4.23% | 3.87% | 2.97% | 3.69% | 4.70% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | 7.89% | 8.15% | 7.24% | 6.90% | 8.23% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
ROA = 100
× (Net income attributable to HCA Healthcare, Inc.Q1 2022
+ Net income attributable to HCA Healthcare, Inc.Q4 2021
+ Net income attributable to HCA Healthcare, Inc.Q3 2021
+ Net income attributable to HCA Healthcare, Inc.Q2 2021)
÷ Total assets
= 100 × (1,273 + 1,814 + 2,269 + 1,450)
÷ 52,208 = 13.04%
2 Click competitor name to see calculations.
The financial analysis over the presented periods reveals distinct patterns and shifts in the key metrics of net income attributable to the company, total assets, and return on assets (ROA).
- Net Income Attributable to HCA Healthcare, Inc.
- The net income shows considerable fluctuation throughout the periods. Initially, there is a downward trend from early 2018, with income decreasing from $1,144 million in March 2018 to a low point around $612 million in September 2019. Subsequently, the net income demonstrates a recovery and growth, especially notable in the last few quarters of 2020 and throughout 2021, reaching a peak of $2,269 million in September 2021. However, the data ends with a decline to $1,273 million by March 2022. The volatility indicates sensitivity to external factors or operational changes, with a strong rebound post-mid 2020 potentially reflecting adaptability or favorable market conditions.
- Total Assets
- Total assets exhibit a steady increasing trend over the observed timeframe. Starting from $37,299 million in March 2018, assets grew consistently to $52,208 million by March 2022. There are minor fluctuations, particularly a slight dip observed towards the end of 2020, but the overall trajectory is upward. This growth signifies ongoing investments, acquisitions, or organic expansion of the company’s asset base, supporting its operational capacity and long-term strategic objectives.
- Return on Assets (ROA)
- The ROA percentage demonstrates an overall improvement with some intermediate variations. The initial readings in 2018 indicate a ROA range between approximately 7% and 9.7%. A decrease to around 6.6% is observed during mid to late 2020, coinciding with the fluctuations in net income during this period. After this, ROA increases sharply, peaking above 13% in late 2021, reflecting enhanced profitability relative to asset utilization. The last recorded ROA in the first quarter of 2022 remains above 13%, confirming sustained efficiency in generating earnings from assets despite the dip in net income.
In summary, the data suggests a dynamic financial performance characterized by temporarily reduced net income during mid-2019 to mid-2020, followed by significant recovery and profitability improvement as shown in the rising ROA figures. The consistent asset growth supports the company’s capacity for revenue generation, while the elevated ROA levels in the latter periods indicate a period of effective operational management and return maximization on deployed assets.