HCA Holdings Inc (HCA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.84% | 53.07% | 53.47% | 49.00% | 49.28% |
| Operating profit margin | 33.26% | 33.57% | 35.56% | 29.93% | 29.90% |
| Pretax margin | 10.55% | 12.27% | 15.43% | 9.31% | 8.97% |
| Net profit margin | 8.07% | 9.37% | 11.84% | 7.28% | 6.83% |
HCA Healthcare Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has remained consistently high at 100% throughout this period, indicating efficient control over the cost of goods sold.
The operating profit margin has shown some variability, ranging from 14.09% to 16.47%. This margin reflects the company's ability to generate profits from its core operations after accounting for operating expenses, with a slight decrease observed in 2023 compared to the previous year.
The pretax margin has fluctuated between 10.22% and 16.74%, indicating the company's ability to generate income before accounting for taxes. There was a notable drop in 2023 compared to 2022, suggesting potential challenges or increased costs impacting profitability before tax expenses.
The net profit margin, which represents the percentage of revenue converted into net income, has also varied between 6.83% and 11.84%. Despite showing an upward trend from 2019 to 2022, there was a decrease in 2023, with the net profit margin standing at 8.07%.
Overall, HCA Healthcare Inc has demonstrated strong gross profit margins and relatively stable operating profit margins, though the pretax and net profit margins have exhibited more variability. Further analysis would be needed to understand the specific factors driving these fluctuations and the company's overall profitability position.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 38.44% | 38.57% | 41.17% | 32.47% | 34.07% |
| Return on assets (ROA) | 9.33% | 10.76% | 13.71% | 7.90% | 7.78% |
| Return on total capital | 24.85% | 26.13% | 31.83% | 20.34% | 20.89% |
| Return on equity (ROE) | — | — | — | 656.29% | — |
HCA Healthcare Inc's profitability ratios indicate a strong performance over the last five years. The operating return on assets (Operating ROA) has remained relatively stable, ranging from 15.29% to 19.07%, with a slight decrease in the most recent year to 17.13%. This suggests that the company is effectively generating operating profits from its assets.
The return on assets (ROA) has also shown a positive trend, increasing from 7.78% in 2019 to 13.71% in 2021, before decreasing slightly to 9.33% in 2023. This indicates that HCA Healthcare is becoming more efficient in generating profits relative to its total assets.
The return on total capital has shown a similar trend, ranging from 23.17% to 29.10% over the past five years, demonstrating the company's ability to generate returns for both debt and equity holders.
It is worth noting that the return on equity (ROE) data is missing for the first three years but shows an exceptionally high value of 656.29% in 2020. This could be due to a significant one-time event or a specific financial adjustment that affected the equity calculation. More information would be needed to fully understand this anomaly.
Overall, the profitability ratios for HCA Healthcare Inc demonstrate a consistent ability to generate returns for its stakeholders, indicating strong financial performance and effective asset utilization.