Investment Thesis
HCA demonstrates solid operational fundamentals with strong revenue growth (+7.1% YoY) and substantial free cash flow generation ($7.7B), but the negative stockholders' equity of -$6.0B and extremely high debt load ($44.3B) create significant financial risk. The company's ability to service debt remains adequate (4.4x interest coverage), but the capital structure raises concerns about financial flexibility and shareholder value.
HCA Strengths
- Strong revenue growth of 7.1% YoY demonstrates market demand and operational momentum
- Robust free cash flow of $7.7B (10.2% FCF margin) provides cash for debt reduction and operations
- Solid operating efficiency with 13.0% operating margin and 11.2% ROA showing effective asset utilization
- Adequate interest coverage ratio of 4.4x indicates ability to meet debt obligations
- Significant operating cash flow of $12.6B demonstrates underlying business quality
HCA Risks
- Negative stockholders' equity of -$6.0B indicates capital structure is severely leveraged and equity-negative
- Extremely high debt of $44.3B (97.5% of total assets) creates refinancing and economic cycle risk
- Net income declined 12.8% YoY despite revenue growth, suggesting margin compression or cost pressures
- Low current ratio of 0.97x and quick ratio of 0.86x indicate tight liquidity and working capital stress
- Limited cash position of only $1.0B relative to debt obligations reduces financial flexibility
Key Metrics to Watch
- Net income trend and operating margin sustainability
- Absolute debt reduction through free cash flow application
- Operating cash flow consistency and working capital trends
- Interest coverage ratio maintenance above 4.0x threshold
- Quarterly revenue growth trajectory and patient volume metrics
HCA Financial Metrics
HCA Profitability Ratios
HCA Balance Sheet & Liquidity
HCA 5-Year Financial Trend
5-Year Trend Summary: HCA Healthcare, Inc.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $18.97 reflects profitable operations.
HCA Growth Metrics (YoY)
HCA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $17.5B | $1.3B | $4.88 |
| Q2 2025 | $17.5B | $1.5B | $5.53 |
| Q1 2025 | $17.3B | $1.6B | $5.93 |
| Q3 2024 | $16.2B | $1.1B | $3.91 |
| Q2 2024 | $15.9B | $1.2B | $4.29 |
| Q1 2024 | $15.6B | $1.4B | $4.85 |
| Q3 2023 | $15.0B | $1.1B | $3.91 |
| Q2 2023 | $14.8B | $1.2B | $3.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HCA Capital Allocation
HCA SEC Filings
Access official SEC EDGAR filings for HCA Healthcare, Inc. (CIK: 0000860730)