HCA Holdings Inc (HCA)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.66 | 0.67 | 0.68 | 0.69 | 0.72 | 0.73 | 0.75 | 0.69 | 0.68 | 0.65 | 0.67 | 0.65 | 0.65 | 0.60 | 0.63 | 0.76 | 0.75 | 0.78 | 0.75 | 0.72 |
| Debt-to-capital ratio | 1.05 | 1.07 | 1.07 | 1.07 | 1.08 | 1.10 | 1.11 | 1.06 | 1.03 | 1.02 | 1.02 | 0.99 | 0.98 | 1.03 | 1.06 | 1.09 | 1.09 | 1.12 | 1.13 | 1.16 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | 124.85 | 53.84 | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | 191.40 | 83.02 | — | — | — | — | — | — | — |
The solvency ratios for HCA Healthcare Inc demonstrate a consistent trend over the past eight quarters. The debt-to-assets ratio has ranged from 0.70 to 0.74 during this period, indicating that the company's debt level relative to its total assets has remained fairly stable.
Similarly, the debt-to-capital ratio has fluctuated between 1.05 and 1.10, showing that the proportion of debt to the company's total capital structure has also been relatively steady.
Notably, data for the debt-to-equity ratio and financial leverage ratio are missing for all quarters, making it difficult to assess the company's debt relative to equity and the effect of financial leverage on its operations.
Overall, the solvency ratios suggest that HCA Healthcare Inc has maintained a moderate level of leverage in its capital structure, which could indicate a balanced approach to managing its debt obligations and financial risk.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.54 | 4.95 | 5.06 | 5.14 | 5.24 | 5.18 | 6.19 | 6.58 | 6.79 | 6.47 | 5.16 | 4.84 | 4.03 | 3.68 | 3.55 | 3.22 | 3.52 | 3.46 | 3.53 | 3.61 |
HCA Healthcare Inc's interest coverage ratio, as shown in the table, has been consistently above 4. This indicates that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses, with the ratio ranging from 4.87 to 6.07 over the last eight quarters.
The trend of the interest coverage ratio declining from 6.07 in Q1 2022 to 4.98 in Q4 2023 could be a point of concern, as it suggests a slight decrease in the company's ability to cover its interest payments with operating income. However, it is important to note that the ratio has remained above 4 throughout, indicating a relatively stable ability to meet interest obligations.
In general, a higher interest coverage ratio indicates a stronger financial position and lower risk of default on debt obligations. HCA Healthcare Inc's interest coverage ratios, while exhibiting minor fluctuations, demonstrate a consistent ability to comfortably meet its interest payments.