HCA Healthcare (MEX:HCA) Beneish M-Score : -2.81 (As of Dec. 14, 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 -2.81 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:

MEX:HCA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67 Med: -2.8 Max: -1.91
Current: -2.81

During the past 13 years, the highest Beneish M-Score of HCA Healthcare was -1.91. The lowest was -3.67. And the median was -2.80.

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
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.84	-2.73	-2.75	-2.67	-2.81

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 * 1.1141

0.528 * 0.9966

0.404 * 0.9553

0.892 * 1.0956

0.115 * 1.1248

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9659

4.679 * -0.077355

0.327 * 0.9925

-2.65

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN195,229 Mil.
Revenue was 344324.276 + 320455.242 + 287762.466 + 293705.413 = MXN1,246,247 Mil.
Gross Profit was 292007.149 + 272200.091 + 243433.868 + 249843.956 = MXN1,057,485 Mil.
Total Current Assets was MXN328,080 Mil.
Total Assets was MXN1,170,766 Mil.
Property, Plant and Equipment(Net PPE) was MXN615,282 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN58,170 Mil.
Selling, General, & Admin. Expense(SGA) was MXN551,978 Mil.
Total Current Liabilities was MXN293,385 Mil.
Long-Term Debt & Capital Lease Obligation was MXN791,688 Mil.
Net Income was 25006.681 + 26765.671 + 26404.642 + 27277.617 = MXN105,455 Mil.
Non Operating Income was 216.593 + 219.841 + 3302.655 + 594.099 = MXN4,333 Mil.
Cash Flow from Operations was 69211.405 + 36108.923 + 40976.154 + 45389.139 = MXN191,686 Mil.

Total Receivables was MXN159,940 Mil.
Revenue was 282412.577 + 271919.398 + 281027.775 + 302129.512 = MXN1,137,489 Mil.
Gross Profit was 240311.103 + 229436.814 + 237353.2 + 254773.728 = MXN961,875 Mil.
Total Current Assets was MXN248,986 Mil.
Total Assets was MXN950,880 Mil.
Property, Plant and Equipment(Net PPE) was MXN508,562 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN54,725 Mil.
Selling, General, & Admin. Expense(SGA) was MXN521,607 Mil.
Total Current Liabilities was MXN216,116 Mil.
Long-Term Debt & Capital Lease Obligation was MXN671,829 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)
	=	(195229.325 / 1246247.397)	/	(159940.312 / 1137489.262)
	=	0.156654	/	0.140608
	=	1.1141

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)
	=	(961874.845 / 1137489.262)	/	(1057485.064 / 1246247.397)
	=	0.845612	/	0.848535
	=	0.9966

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 - (328079.779 + 615282.495) / 1170765.549)	/	(1 - (248985.714 + 508562.117) / 950880.168)
	=	0.194235	/	0.203319
	=	0.9553

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
	=	1246247.397	/	1137489.262
	=	1.0956

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))
	=	(54724.828 / (54724.828 + 508562.117))	/	(58170.102 / (58170.102 + 615282.495))
	=	0.097153	/	0.086376
	=	1.1248

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)
	=	(551977.834 / 1246247.397)	/	(521606.726 / 1137489.262)
	=	0.442912	/	0.45856
	=	0.9659

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)
	=	((791687.893 + 293385.47) / 1170765.549)	/	((671829.438 + 216116.255) / 950880.168)
	=	0.926807	/	0.933815
	=	0.9925

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
	=	(105454.611 - 4333.188	-	191685.621)	/	1170765.549
	=	-0.077355

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 -2.65 suggests that the company is unlikely to be a manipulator.

HCA Healthcare Beneish M-Score Related Terms

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HCA Healthcare Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

HCA:USA 1HCA:Italy 0J1R:UK 2BH:Germany 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 June 2024, the firm owned and operated 188 hospitals, 123 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.