HCA Healthcare (FRA:2BH) Beneish M-Score : -2.73 (As of Apr. 26, 2024)

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What is HCA Healthcare Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for HCA Healthcare's Beneish M-Score or its related term are showing as below:

FRA:2BH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01 Med: -2.79 Max: -2.69
Current: -2.73

During the past 13 years, the highest Beneish M-Score of HCA Healthcare was -2.69. The lowest was -3.01. And the median was -2.79.

HCA Healthcare Beneish M-Score Historical Data

The historical data trend for HCA Healthcare's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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HCA Healthcare Beneish M-Score Chart

HCA Healthcare Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.83

-3.01

-2.69

-2.79

-2.73

HCA Healthcare Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.79	-2.86	-2.94	-2.84	-2.73

Competitive Comparison of HCA Healthcare's Beneish M-Score

For the Medical Care Facilities subindustry, HCA Healthcare's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

HCA Healthcare's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, HCA Healthcare's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where HCA Healthcare's Beneish M-Score falls into.

HCA Healthcare Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of HCA Healthcare for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0352

0.528 * 0.9963

0.404 * 0.9502

0.892 * 1.0509

0.115 * 1.0375

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9877

4.679 * -0.075659

0.327 * 0.9775

-2.76

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €9,131 Mil.
Revenue was 15866.851 + 15191.581 + 14639.703 + 14561.994 = €60,260 Mil.
Gross Profit was 13497.323 + 12926.852 + 12352.509 + 12298.912 = €51,076 Mil.
Total Current Assets was €13,688 Mil.
Total Assets was €51,545 Mil.
Property, Plant and Equipment(Net PPE) was €27,438 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,854 Mil.
Selling, General, & Admin. Expense(SGA) was €27,355 Mil.
Total Current Liabilities was €11,605 Mil.
Long-Term Debt & Capital Lease Obligation was €35,829 Mil.
Net Income was 1473.619 + 1011.023 + 1101.139 + 1273.042 = €4,859 Mil.
Non Operating Income was 32.095 + 19.677 + -5.538 + -30.822 = €15 Mil.
Cash Flow from Operations was 2452.058 + 2322.823 + 2284.425 + 1684.002 = €8,743 Mil.

Total Receivables was €8,393 Mil.
Revenue was 14629.168 + 15120.71 + 14019.72 + 13570.06 = €57,340 Mil.
Gross Profit was 12336.192 + 12777.51 + 11842.974 + 11462.592 = €48,419 Mil.
Total Current Assets was €12,879 Mil.
Total Assets was €49,501 Mil.
Property, Plant and Equipment(Net PPE) was €26,092 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,827 Mil.
Selling, General, & Admin. Expense(SGA) was €26,354 Mil.
Total Current Liabilities was €9,347 Mil.
Long-Term Debt & Capital Lease Obligation was €37,256 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(9131.486 / 60260.129)	/	(8393.104 / 57339.658)
	=	0.151534	/	0.146375
	=	1.0352

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(48419.268 / 57339.658)	/	(51075.596 / 60260.129)
	=	0.844429	/	0.847585
	=	0.9963

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (13688.059 + 27438.474) / 51545.487)	/	(1 - (12878.992 + 26092.16) / 49501.472)
	=	0.202131	/	0.212727
	=	0.9502

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	60260.129	/	57339.658
	=	1.0509

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(2827.294 / (2827.294 + 26092.16))	/	(2854.419 / (2854.419 + 27438.474))
	=	0.097764	/	0.094227
	=	1.0375

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(27354.789 / 60260.129)	/	(26353.754 / 57339.658)
	=	0.453945	/	0.459608
	=	0.9877

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((35829.024 + 11604.635) / 51545.487)	/	((37255.904 + 9347.488) / 49501.472)
	=	0.920229	/	0.941455
	=	0.9775

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(4858.823 - 15.412	-	8743.308)	/	51545.487
	=	-0.075659

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

HCA Healthcare has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

HCA Healthcare Beneish M-Score Related Terms

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HCA Healthcare (FRA:2BH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » HCA Healthcare Inc (FRA:2BH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

HCA:USA HCA:Mexico 2BH:Germany H1CA34:Brazil

Address

One Park Plaza, Nashville, TN, USA, 37203

Website

https://www.hcahealthcare.com

HCA Healthcare is a Nashville-based healthcare provider organization operating the largest collection of acute-care hospitals in the United States. As of December 2022, the firm owned and operated 182 hospitals, 126 freestanding outpatient surgery centers, and a broad network of physician offices, urgent-care clinics, and freestanding emergency rooms across 20 states and a small foothold in England.

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