HCA Holdings Inc (HCA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 21,608,000 | 20,223,000 | 20,892,000 | 15,422,000 | 15,352,000 |
| Total assets | US$ in thousands | 56,211,000 | 52,438,000 | 50,742,000 | 47,490,000 | 45,058,000 |
| Operating ROA | 38.44% | 38.57% | 41.17% | 32.47% | 34.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $21,608,000K ÷ $56,211,000K
= 38.44%
Operating ROA measures the efficiency of HCA Healthcare Inc in generating operating profits from its assets. Over the past five years, the company's operating ROA has exhibited some fluctuations. In 2021, the operating ROA was the highest at 19.07%, indicating that for every dollar of assets, the company generated 19.07 cents in operating profits. This suggests that the company was effectively utilizing its assets to generate operating income that year.
In 2022 and 2019, the operating ROA was also relatively high at 17.26% and 16.02% respectively, reflecting efficient asset utilization and profitability. However, in 2023 and 2020, the operating ROA decreased to 17.13% and 15.29% respectively. These lower figures may indicate a decrease in profitability relative to the assets employed during these years.
Overall, HCA Healthcare Inc has shown a generally positive trend in operating ROA over the past five years, indicating the company's ability to efficiently generate operating profits from its assets. It is important for the company to continue monitoring and improving its operating ROA to ensure sustainable profitability and efficient asset utilization in the future.
Peer comparison
Dec 31, 2023