HCA Financial Analysis

Analysis Date: 1/25/2025

Business Model

HCA Healthcare generates revenue primarily through operation of hospitals and outpatient facilities

Revenue Sources

• Hospital services (inpatient and outpatient)
• Surgery centers and freestanding emergency rooms

Revenue Distribution by Channel

• Inpatient revenues: 62.1% of patient revenues
• Outpatient revenues: 37.9% of patient revenues

Income Statement Analysis

• Revenue grew 5.7% year-over-year to $18.3B driven by 3.0% increase in same facility admissions
• Net income declined 10.5% to $1.44B impacted by $200M from Hurricanes Helene and Milton

Balance Sheet Analysis

• Strong cash position with $1.93B at year-end, up 107% year-over-year
• Total assets increased 5.9% to $59.5B

Cash Flow Analysis

• Operating cash flow of $2.56B in Q4, down 4.3% year-over-year

Capital Allocation

Company announced new $10B share repurchase program, quarterly dividend of $0.72 per share, and plans $5.0-5.2B in capital expenditures for 2025

Management Commentary

Strong business fundamentals consistent with previous quarters

Well positioned for future after operational improvements across key metrics

$200M impact from hurricanes in Q4

Overall Sentiment: Positive and confident about future growth despite near-term weather impacts

Recommendation

Rating: Buy

Reason for Rating: Strong operational execution and growth outlook with expanding margins

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/25/2025, 3:05:43 AM