Analysis of Solvency Ratios
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
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).
The financial metrics indicate several notable trends over the analyzed period.
- Debt to capital and debt to assets
- Debt to capital showed a declining trend from 1.26 in 2017 to 0.98 in 2020, followed by a slight increase to 1.03 in 2021. This suggests a reduction in reliance on debt financing relative to the total capital base, with a minor reversal in the last reported year. When including operating lease liabilities, the ratios remained consistent, indicating operating leases have a proportional impact across the periods.
- Debt to assets also decreased steadily from 0.90 in 2017 to 0.65 in 2020, with a marginal increase to 0.68 in 2021. Including operating lease liabilities increased these figures slightly but maintained the general downward trend, reflecting a decrease in the proportion of assets financed through debt, which may imply strengthening asset coverage over time.
- Debt to equity ratios
- Debt to equity was only reported for 2020 at 54.2 and including operating lease liability at 57.79, with no data available for other years. These high values suggest significant leverage relative to equity in that year, but lack of comparative data limits trend analysis.
- Financial leverage
- Financial leverage was reported solely in 2020 at a ratio of 83.02, implying high use of debt relative to shareholders' equity in that year, but absence of additional years precludes trend identification.
- Interest coverage and fixed charge coverage
- Interest coverage showed an overall improvement from 3.59 in 2017 to 7.28 in 2021, with a minor dip in 2019. This indicates an enhanced ability to meet interest expenses from operating earnings over the period, signaling improved financial stability and earnings strength.
- Fixed charge coverage also improved from 3.59 in 2017 to 5.81 in 2021, though it exhibited some fluctuation, notably declining to 3.37 in 2019 before rising again. The pattern suggests growing capacity to cover fixed financial obligations, but with some volatility in intermediate years.
Overall, the data reveals a general trend toward reduced leverage relative to capital and assets, alongside improved ability to service debt costs. However, limited availability of certain leverage metrics in earlier years restricts comprehensive longitudinal assessment. The incremental increase in leverage ratios in 2021 may warrant monitoring for potential changes in risk exposure.
Debt Ratios
Coverage Ratios
Debt to Equity
HCA Healthcare Inc., debt to equity 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) | ||||||
| Long-term debt due within one year | 237) | 209) | 145) | 788) | 200) | |
| Long-term debt due after one year, less debt issuance costs and discounts | 34,342) | 30,795) | 33,577) | 32,033) | 32,858) | |
| Total debt | 34,579) | 31,004) | 33,722) | 32,821) | 33,058) | |
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (933) | 572) | (2,808) | (4,950) | (6,806) | |
| Solvency Ratio | ||||||
| Debt to equity1 | — | 54.20 | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.50 | 0.57 | — | — | — | |
| CVS Health Corp. | 0.75 | 0.93 | — | — | — | |
| Elevance Health Inc. | 0.64 | 0.60 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.51 | 0.49 | — | — | — | |
| UnitedHealth Group Inc. | 0.64 | 0.66 | — | — | — | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.60 | 0.66 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.79 | 0.92 | — | — | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 34,579 ÷ -933 = —
2 Click competitor name to see calculations.
- Total Debt
- The total debt level demonstrates some fluctuation during the analyzed period. It started at US$33,058 million in 2017, slightly decreased to US$32,821 million in 2018, increased to US$33,722 million in 2019, then dropped significantly to US$31,004 million in 2020, before rising again to US$34,579 million in 2021. This suggests a pattern of managing debt actively, with a notable reduction during 2020 followed by an increase the subsequent year.
- Stockholders’ Equity (Deficit) Attributable to HCA Healthcare, Inc.
- The stockholders' equity shows a clear trend of improvement over the five-year period. Beginning with a substantial deficit of US$-6,806 million in 2017, the deficit narrowed progressively each year to US$-4,950 million in 2018, US$-2,808 million in 2019, then turned positive to US$572 million in 2020. However, equity slipped back into a deficit of US$-933 million by 2021. This reflects a significant recovery in equity followed by some deterioration in the last year, indicating possible financial or operational challenges affecting the equity base.
- Debt to Equity Ratio
- Only one data point is available, showing a ratio of 54.2 at an unspecified date. Without additional data points, it is not possible to assess a trend or provide a comparative analysis of leverage over time.
Debt to Equity (including Operating Lease Liability)
HCA Healthcare Inc., debt to equity (including operating lease liability) 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) | ||||||
| Long-term debt due within one year | 237) | 209) | 145) | 788) | 200) | |
| Long-term debt due after one year, less debt issuance costs and discounts | 34,342) | 30,795) | 33,577) | 32,033) | 32,858) | |
| Total debt | 34,579) | 31,004) | 33,722) | 32,821) | 33,058) | |
| Right-of-use current operating lease obligations | 392) | 379) | 350) | —) | —) | |
| Right-of-use noncurrent operating lease obligations | 1,755) | 1,673) | 1,499) | —) | —) | |
| Total debt (including operating lease liability) | 36,726) | 33,056) | 35,571) | 32,821) | 33,058) | |
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (933) | 572) | (2,808) | (4,950) | (6,806) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | — | 57.79 | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.54 | 0.61 | — | — | — | |
| CVS Health Corp. | 1.01 | 1.23 | — | — | — | |
| Elevance Health Inc. | 0.67 | 0.63 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.53 | 0.51 | — | — | — | |
| UnitedHealth Group Inc. | 0.70 | 0.73 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.70 | 0.76 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.85 | 0.98 | — | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 36,726 ÷ -933 = —
2 Click competitor name to see calculations.
The financial data over the period ending December 31, 2017, to December 31, 2021, reveals several notable trends related to debt levels and equity position.
- Total Debt (including operating lease liability)
- Total debt figures remained relatively stable but exhibited some fluctuations throughout the period. The debt was approximately $33.1 billion at the end of 2017 and slightly decreased by the end of 2018 to about $32.8 billion. However, in 2019, there was an increase to approximately $35.6 billion, followed by a reduction in 2020 to around $33.1 billion. By the end of 2021, total debt increased again to approximately $36.7 billion. Overall, the pattern shows modest variability with a tendency toward an increase in indebtedness by 2021.
- Stockholders’ Equity (deficit) attributable to HCA Healthcare, Inc.
- Stockholders’ equity displayed a progressive improvement from a significant deficit of $6.8 billion at the end of 2017 to a less severe deficit of $4.95 billion in 2018, and further narrowing to approximately $2.8 billion in 2019. Notably, equity turned positive in 2020, reaching about $572 million, which indicates a temporary recovery in the company's net asset position. However, this positive trend was not sustained, as equity reverted to a deficit of approximately $933 million by the end of 2021. This volatility signals challenges in maintaining a stable equity base during the period.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio data is largely missing except for the figure recorded at one point, which is 57.79. This extremely high ratio reflects a substantial leverage position, which is consistent with the observed large deficits in equity relative to debt. The lack of a complete ratio series limits a thorough analysis of leverage trend dynamics but points to a generally highly leveraged financial structure.
In summary, over the analyzed years, the company experienced a relatively high and somewhat fluctuating total debt, with an overall increasing tendency by the end of 2021. Stockholders’ equity improved gradually until 2020 but then declined again, suggesting financial instability or other factors adversely affecting net assets. The leverage position is notably high, emphasizing considerable reliance on debt financing relative to equity.
Debt to Capital
HCA Healthcare Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Long-term debt due within one year | 237) | 209) | 145) | 788) | 200) | |
| Long-term debt due after one year, less debt issuance costs and discounts | 34,342) | 30,795) | 33,577) | 32,033) | 32,858) | |
| Total debt | 34,579) | 31,004) | 33,722) | 32,821) | 33,058) | |
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (933) | 572) | (2,808) | (4,950) | (6,806) | |
| Total capital | 33,646) | 31,576) | 30,914) | 27,871) | 26,252) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 1.03 | 0.98 | 1.09 | 1.18 | 1.26 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.34 | 0.36 | — | — | — | |
| CVS Health Corp. | 0.43 | 0.48 | — | — | — | |
| Elevance Health Inc. | 0.39 | 0.38 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.34 | 0.33 | — | — | — | |
| UnitedHealth Group Inc. | 0.39 | 0.40 | — | — | — | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.38 | 0.40 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.44 | 0.48 | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 34,579 ÷ 33,646 = 1.03
2 Click competitor name to see calculations.
- Total Debt
- The company's total debt exhibited fluctuations over the analyzed period. It increased slightly from 33,058 million USD at the end of 2017 to 33,722 million USD in 2019. Subsequently, there was a decrease to 31,004 million USD in 2020, followed by a notable rise to 34,579 million USD in 2021. This indicates variability in debt management, with a dip observed during 2020 before an upward adjustment in the following year.
- Total Capital
- Total capital demonstrated a consistent upward trajectory throughout the period. Starting at 26,252 million USD in 2017, it increased steadily each year, reaching 33,646 million USD by 2021. This progression suggests continuous growth or reinvestment in capital resources.
- Debt to Capital Ratio
- The debt to capital ratio declined from 1.26 in 2017 to 0.98 in 2020, reflecting a gradual reduction in leverage relative to total capital during this interval. However, in 2021, the ratio increased slightly to 1.03, indicating a modest rise in relative debt levels compared to capital. Overall, the ratio trends imply an initial move towards lower leverage with some reversal in the most recent year.
Debt to Capital (including Operating Lease Liability)
HCA Healthcare Inc., debt to capital (including operating lease liability) 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) | ||||||
| Long-term debt due within one year | 237) | 209) | 145) | 788) | 200) | |
| Long-term debt due after one year, less debt issuance costs and discounts | 34,342) | 30,795) | 33,577) | 32,033) | 32,858) | |
| Total debt | 34,579) | 31,004) | 33,722) | 32,821) | 33,058) | |
| Right-of-use current operating lease obligations | 392) | 379) | 350) | —) | —) | |
| Right-of-use noncurrent operating lease obligations | 1,755) | 1,673) | 1,499) | —) | —) | |
| Total debt (including operating lease liability) | 36,726) | 33,056) | 35,571) | 32,821) | 33,058) | |
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (933) | 572) | (2,808) | (4,950) | (6,806) | |
| Total capital (including operating lease liability) | 35,793) | 33,628) | 32,763) | 27,871) | 26,252) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 1.03 | 0.98 | 1.09 | 1.18 | 1.26 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.35 | 0.38 | — | — | — | |
| CVS Health Corp. | 0.50 | 0.55 | — | — | — | |
| Elevance Health Inc. | 0.40 | 0.39 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.35 | 0.34 | — | — | — | |
| UnitedHealth Group Inc. | 0.41 | 0.42 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.41 | 0.43 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.46 | 0.50 | — | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 36,726 ÷ 35,793 = 1.03
2 Click competitor name to see calculations.
The financial data reveals several key trends in the company’s debt and capital structure over the five-year period from 2017 to 2021.
- Total Debt (Including Operating Lease Liability)
- The total debt fluctuated over the years, starting at US$33,058 million in 2017 and slightly decreasing to US$32,821 million in 2018. It then increased significantly to US$35,571 million in 2019 before falling again to US$33,056 million in 2020. In 2021, total debt rose to its highest point of the period at US$36,726 million. Overall, the total debt shows a pattern of volatility with an upward trend in the last year.
- Total Capital (Including Operating Lease Liability)
- Total capital exhibited consistent growth over the analyzed period. Beginning at US$26,252 million in 2017, it steadily increased each year, reaching US$27,871 million in 2018, US$32,763 million in 2019, US$33,628 million in 2020, and finally US$35,793 million in 2021. This steady rise in total capital indicates ongoing investment and capitalization improvements.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio declined consistently from a notably high 1.26 in 2017 to below 1.00 at 0.98 in 2020, indicating an improving capital structure with proportionally less debt relative to capital in those years. However, it increased slightly to 1.03 in 2021, signaling a minor reversal but remaining near balanced levels. The downward trend followed by a mild increase suggests cautious management of leverage with occasional adjustments in financing strategy.
In summary, while total debt experienced fluctuations with a recent increase, total capital grew steadily each year, contributing to an overall healthier capital structure evidenced by the falling debt to capital ratio up to 2020. The slight uptick in leverage in 2021 may merit monitoring to ensure sustainable financial stability going forward.
Debt to Assets
HCA Healthcare Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Long-term debt due within one year | 237) | 209) | 145) | 788) | 200) | |
| Long-term debt due after one year, less debt issuance costs and discounts | 34,342) | 30,795) | 33,577) | 32,033) | 32,858) | |
| Total debt | 34,579) | 31,004) | 33,722) | 32,821) | 33,058) | |
| Total assets | 50,742) | 47,490) | 45,058) | 39,207) | 36,593) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.68 | 0.65 | 0.75 | 0.84 | 0.90 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.24 | 0.26 | — | — | — | |
| CVS Health Corp. | 0.24 | 0.28 | — | — | — | |
| Elevance Health Inc. | 0.24 | 0.23 | — | — | — | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | — | — | — | |
| Medtronic PLC | 0.28 | 0.27 | — | — | — | |
| UnitedHealth Group Inc. | 0.22 | 0.22 | — | — | — | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.23 | 0.25 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.31 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 34,579 ÷ 50,742 = 0.68
2 Click competitor name to see calculations.
- Total Debt
- Over the five-year period ending in 2021, the total debt experienced fluctuations. The value started at 33,058 million USD in 2017, slightly decreased to 32,821 million USD in 2018, and then rose to 33,722 million USD in 2019. It subsequently declined to 31,004 million USD in 2020 before increasing again to 34,579 million USD in 2021. This pattern indicates a moderate variability in debt levels, with a notable dip in 2020 followed by a recovery above previous years by 2021.
- Total Assets
- Total assets showed a consistent upward trend throughout the period. Commencing at 36,593 million USD in 2017, assets steadily grew each year to reach 50,742 million USD by 2021. This represents a substantial increase of approximately 38.7% over five years, indicating sustained asset growth and expansion.
- Debt to Assets Ratio
- The debt to assets ratio exhibited a declining trend from 0.90 in 2017 to a low of 0.65 in 2020, reflecting an improvement in the company’s leverage position relative to its asset base. In 2021, the ratio increased slightly to 0.68 but remained significantly lower than the 2017 level. This suggests a general reduction in financial risk over the analyzed period, although the uptick in the final year may warrant attention.
Debt to Assets (including Operating Lease Liability)
HCA Healthcare Inc., debt to assets (including operating lease liability) 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) | ||||||
| Long-term debt due within one year | 237) | 209) | 145) | 788) | 200) | |
| Long-term debt due after one year, less debt issuance costs and discounts | 34,342) | 30,795) | 33,577) | 32,033) | 32,858) | |
| Total debt | 34,579) | 31,004) | 33,722) | 32,821) | 33,058) | |
| Right-of-use current operating lease obligations | 392) | 379) | 350) | —) | —) | |
| Right-of-use noncurrent operating lease obligations | 1,755) | 1,673) | 1,499) | —) | —) | |
| Total debt (including operating lease liability) | 36,726) | 33,056) | 35,571) | 32,821) | 33,058) | |
| Total assets | 50,742) | 47,490) | 45,058) | 39,207) | 36,593) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.72 | 0.70 | 0.79 | 0.84 | 0.90 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.26 | 0.27 | — | — | — | |
| CVS Health Corp. | 0.33 | 0.37 | — | — | — | |
| Elevance Health Inc. | 0.25 | 0.24 | — | — | — | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | — | — | — | |
| Medtronic PLC | 0.29 | 0.28 | — | — | — | |
| UnitedHealth Group Inc. | 0.24 | 0.24 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.27 | 0.29 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.34 | — | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 36,726 ÷ 50,742 = 0.72
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's capital structure and asset base over the five-year period ending in 2021. The total assets demonstrate a consistent upward trajectory, increasing from $36,593 million in 2017 to $50,742 million in 2021. This growth indicates ongoing asset accumulation or acquisition, reflecting expansion or increased investment in operational capacity.
Total debt, inclusive of operating lease liabilities, shows fluctuating levels across the same timeframe. Initially, total debt remains relatively stable, with a slight decrease from $33,058 million in 2017 to $32,821 million in 2018, followed by a rise to $35,571 million in 2019. In 2020, the debt decreases again to $33,056 million but subsequently increases to $36,726 million in 2021, marking the highest value in the observed period.
The debt-to-assets ratio, which measures leverage by comparing total debt to total assets, reflects a general downward trend despite the fluctuations in absolute debt levels. Starting at a high 0.9 in 2017, the ratio steadily declines to 0.84 in 2018, 0.79 in 2019, and reaches a low of 0.7 in 2020, signaling reduced leverage relative to the growing asset base. However, there is a slight increase to 0.72 in 2021, indicating a marginal rise in leverage compared to the previous year.
Overall, the data suggests that while total debt has varied, the company has effectively expanded its asset base more significantly, leading to a reduction in leverage over most of the period. The slight uptick in both debt and the debt-to-assets ratio in 2021 may warrant further observation to assess if this marks the beginning of a changing leverage strategy or a response to specific operational needs.
Financial Leverage
HCA Healthcare Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 50,742) | 47,490) | 45,058) | 39,207) | 36,593) | |
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. | (933) | 572) | (2,808) | (4,950) | (6,806) | |
| Solvency Ratio | ||||||
| Financial leverage1 | — | 83.02 | — | — | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.10 | 2.21 | — | — | — | |
| CVS Health Corp. | 3.10 | 3.32 | — | — | — | |
| Elevance Health Inc. | 2.70 | 2.61 | — | — | — | |
| Intuitive Surgical Inc. | 1.14 | 1.15 | — | — | — | |
| Medtronic PLC | 1.81 | 1.79 | — | — | — | |
| UnitedHealth Group Inc. | 2.96 | 3.01 | — | — | — | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.57 | 2.64 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.74 | 2.93 | — | — | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
= 50,742 ÷ -933 = —
2 Click competitor name to see calculations.
- Total assets
- The total assets have shown a consistent upward trend over the five-year period. Starting at $36,593 million in 2017, the assets increased each year, reaching $50,742 million in 2021. This indicates a steady expansion of the company's asset base, reflecting possible growth in operations or acquisitions.
- Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc.
- The stockholders’ equity has remained negative throughout the period, but there is a notable improvement from 2017 to 2020. The deficit decreased from -$6,806 million in 2017 to a marginally positive figure of $572 million in 2020. However, in 2021, the equity again turned negative, at -$933 million. This fluctuation suggests challenges in maintaining positive equity, despite improvements prior to 2021.
- Financial leverage
- Financial leverage data is incomplete, with only a value of 83.02 reported, without specified corresponding years. Due to missing data, analysis of leverage trends over time is not feasible.
Interest Coverage
HCA Healthcare Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to HCA Healthcare, Inc. | 6,956) | 3,754) | 3,505) | 3,787) | 2,216) | |
| Add: Net income attributable to noncontrolling interest | 765) | 633) | 640) | 602) | 527) | |
| Add: Income tax expense | 2,112) | 1,043) | 1,099) | 946) | 1,638) | |
| Add: Interest expense | 1,566) | 1,584) | 1,824) | 1,755) | 1,690) | |
| Earnings before interest and tax (EBIT) | 11,399) | 7,014) | 7,068) | 7,090) | 6,071) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.28 | 4.43 | 3.88 | 4.04 | 3.59 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 16.41 | 10.10 | — | — | — | |
| CVS Health Corp. | 5.16 | 4.36 | — | — | — | |
| Elevance Health Inc. | 10.93 | 8.96 | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 5.21 | 4.71 | — | — | — | |
| UnitedHealth Group Inc. | 14.44 | 13.47 | — | — | — | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 9.51 | 7.72 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 12.73 | 7.63 | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 11,399 ÷ 1,566 = 7.28
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT showed a generally increasing trend from 2017 to 2021, starting at 6,071 million USD in 2017 and peaking at 11,399 million USD in 2021. Notably, there was a slight decrease between 2018 and 2020, with values hovering around 7,000 million USD, but a significant jump occurred in 2021, indicating a strong improvement in operating profitability during the final year.
- Interest expense
- Interest expense demonstrated minor fluctuations over the period. It increased from 1,690 million USD in 2017 to 1,824 million USD in 2019, then decreased to 1,566 million USD in 2021. The reduction in interest expense after 2019 may suggest improved debt management or repayment of higher-cost liabilities.
- Interest coverage
- Interest coverage ratio experienced steady growth from 3.59 in 2017 to 7.28 in 2021. This continuous improvement reflects an improving ability to cover interest obligations with operating earnings, largely driven by the increase in EBIT and slight reduction in interest expenses. The substantial rise in 2021 specifically indicates a stronger financial position concerning debt servicing.
Fixed Charge Coverage
HCA Healthcare Inc., fixed charge coverage 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. | 6,956) | 3,754) | 3,505) | 3,787) | 2,216) | |
| Add: Net income attributable to noncontrolling interest | 765) | 633) | 640) | 602) | 527) | |
| Add: Income tax expense | 2,112) | 1,043) | 1,099) | 946) | 1,638) | |
| Add: Interest expense | 1,566) | 1,584) | 1,824) | 1,755) | 1,690) | |
| Earnings before interest and tax (EBIT) | 11,399) | 7,014) | 7,068) | 7,090) | 6,071) | |
| Add: Operating lease expense | 478) | 447) | 389) | —) | —) | |
| Earnings before fixed charges and tax | 11,877) | 7,461) | 7,457) | 7,090) | 6,071) | |
| Interest expense | 1,566) | 1,584) | 1,824) | 1,755) | 1,690) | |
| Operating lease expense | 478) | 447) | 389) | —) | —) | |
| Fixed charges | 2,044) | 2,031) | 2,213) | 1,755) | 1,690) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.81 | 3.67 | 3.37 | 4.04 | 3.59 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | 10.21 | 6.68 | — | — | — | |
| CVS Health Corp. | 3.03 | 2.75 | — | — | — | |
| Elevance Health Inc. | 8.48 | 6.10 | — | — | — | |
| Intuitive Surgical Inc. | 93.66 | 58.48 | — | — | — | |
| Medtronic PLC | 4.31 | 3.98 | — | — | — | |
| UnitedHealth Group Inc. | 8.80 | 8.51 | — | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 5.90 | 4.97 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 8.86 | 5.56 | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 11,877 ÷ 2,044 = 5.81
2 Click competitor name to see calculations.
- Earnings Before Fixed Charges and Tax
- The earnings before fixed charges and tax demonstrated a generally positive trend over the five-year period. Starting at 6,071 million US dollars in 2017, the earnings increased steadily each year, reaching 7,090 million in 2018 and 7,457 million in 2019. The figure remained relatively stable in 2020 with a slight increase to 7,461 million. A significant jump was observed in 2021, with earnings rising sharply to 11,877 million, indicating a substantial improvement in operational profitability.
- Fixed Charges
- Fixed charges exhibited fluctuations across the years. The amount increased from 1,690 million US dollars in 2017 to 1,755 million in 2018. There was a notable rise to 2,213 million in 2019, followed by a decline to 2,031 million in 2020. Fixed charges stabilized slightly in 2021, recording a marginal increase to 2,044 million. Overall, while fixed charges rose compared to 2017, the 2021 level remained under the peak observed in 2019.
- Fixed Charge Coverage Ratio
- The fixed charge coverage ratio reflected the company’s ability to cover fixed charges with earnings before fixed charges and tax. Starting at 3.59 in 2017, this ratio improved to 4.04 in 2018, indicating stronger coverage. However, in 2019, the ratio declined significantly to 3.37, pointing to a relative weakening of coverage despite higher earnings owing to increased fixed charges. The ratio improved again in 2020, rising to 3.67. A marked enhancement occurred in 2021, with the coverage ratio reaching 5.81, the highest in the five-year period. This suggests a substantial strengthening in the company’s capacity to meet fixed obligations comfortably, driven primarily by the sharp increase in earnings.