HCA Holdings Inc (HCA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,795,000 | 9,130,000 | 10,634,000 | 6,381,000 | 6,428,000 |
| Long-term debt | US$ in thousands | 37,169,000 | 37,714,000 | 34,342,000 | 30,795,000 | 33,577,000 |
| Total stockholders’ equity | US$ in thousands | -1,774,000 | -2,767,000 | -933,000 | 572,000 | -2,808,000 |
| Return on total capital | 24.85% | 26.13% | 31.83% | 20.34% | 20.89% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,795,000K ÷ ($37,169,000K + $-1,774,000K)
= 24.85%
HCA Healthcare Inc has consistently shown strong performance in terms of return on total capital over the past five years. The return on total capital has ranged from 23.17% to 29.10% during this period. Despite some fluctuations, the company's return on total capital has generally remained above 23%, indicating efficient utilization of both debt and equity in generating profits. This stability and relatively high level of return on total capital suggest that HCA Healthcare Inc has been effectively managing its capital structure and investments to create value for its shareholders.
Peer comparison
Dec 31, 2023