HCA Healthcare (HCA) Financials

HCA Healthcare has demonstrated steady revenue and net income growth over the past several years, accompanied by consistent cash flow generation from operating activities. Here's a detailed analysis of key financial trends based on the last several quarters and years:

• Revenue Growth: Operating revenue increased from approximately $15.6 billion in Q1 2023 to $18.6 billion in Q2 2025, reflecting solid top-line growth.
• Net Income Improvement: Consolidated net income grew from $1.54 billion in Q1 2023 to $1.89 billion in Q2 2025, with steady increases in earnings per share (diluted EPS rose from $4.85 to $6.83 over the same period), indicating improving profitability.
• Strong Operating Cash Flow: Net cash provided by operating activities rose from $1.8 billion in Q1 2023 to $4.2 billion by Q2 2025, showing excellent cash generation capability.
• Disciplined Capital Expenditures: Capital spending on property, plant, and equipment remains substantial but relatively stable around $1.1 to $1.3 billion per quarter, supporting growth while managing cash outflows.
• Dividend Growth: Cash dividends per common share have increased from $0.60 in early 2023 to $0.72 in Q2 2025, underlining a commitment to returning value to shareholders.
• Share Repurchases: Continued significant repurchases of common stock, e.g., $2.5 billion in Q2 2025, which may support EPS growth and signal management confidence.
• Stable Interest Expense: Interest expense has trended modestly higher, from approximately $479 million in Q1 2023 to $568 million in Q2 2025, consistent with the company’s debt levels.
• Leverage and Debt Levels: Total liabilities increased from about $52.5 billion in Q1 2023 to $60.8 billion in Q2 2025, with long-term debt growing moderately. Equity remains negative, largely due to noncontrolling interests and accumulated losses in retained earnings.
• Accounts Receivable and Working Capital: Accounts receivable increased consistently, reflecting higher revenues but also a need to monitor collections efficiency. Total current liabilities also increased but maintained a balance with current assets.
• Negative Common Equity: The company’s common equity remains negative as of Q2 2025 (around -$4.4 billion), indicating liabilities exceed common equity, which may be a risk factor and require attention from investors and creditors.

Summary: HCA Healthcare exhibits strong operational performance with rising revenues, improving profitability, and robust cash flow generation. The company actively returns capital through dividends and share repurchases. However, the negative common equity position signals some financial structural concerns that investors should watch closely. Overall, HCA appears well-positioned financially but with cautious attention needed on balance sheet leverage.