F
HCA Healthcare, Inc. — Earnings Quality Grade F
HCA · Healthcare
Major red flags
Revenue
$75.6B
2025
Net Income
$6.8B
2025
Gross Margin
41.5%
Free Cash Flow
$7.7B
01
Screening Summary
14
Passed
0
Watch
1
Failed
—
M-Score
02
Financial Trends
Revenue & Net Income ($B)
Margins (%)
03
18-Point Screening
01
Revenue Quality
✓
A1DSO Change
DSO 52 days, change -3 days YoY
✓
A2AR vs Revenue Growth
AR growth 1.1% vs revenue growth 7.1%
✓
A3Revenue vs CFFO
Revenue 7.1%, CFFO 20.2%. Cash follows revenue
02
Expense Quality
✓
B1Inventory vs COGS
Inventory -4.9% vs COGS 5.5%. Normal
✓
B2CapEx vs Revenue
CapEx growth 1.4% vs revenue 7.1%. Normal
—
B3SG&A Ratio
Insufficient data
✓
B4Gross Margin
Gross margin 41.5%, change +0.9pp. Stable
03
Cash Flow Quality
✓
C1CFFO vs Net Income
CFFO/NI = 1.86. Profits backed by cash
✓
C2Free Cash Flow
FCF $7.7B, FCF/NI = 1.13
✓
C3Accruals Ratio
Accruals ratio = -9.6%. Low accruals
✗
C4Cash vs Debt
Cash $1.0B covers only 2% of debt $48.7B
04
Balance Sheet Health
✓
D1Goodwill + Intangibles
No goodwill. Clean balance sheet
✓
D2Leverage
Debt/EBITDA = 3.1x. Healthy
✓
D3Soft Asset Growth
Other assets 10.9% vs revenue 7.1%. Normal
—
D4Asset Impairment
No write-off data
05
Acquisition Risk
✓
E1Serial Acquirer FCF
FCF after acquisitions positive
✓
E2Goodwill Surge
No goodwill
06
Manipulation Score
—
F1Beneish M-Score
Insufficient data
05
Altman Z-Score
0.87
Distress Zone0 Distress1.102.605.0+ Safe
-0.0093
Liquidity
-0.0943
Cumulative profit
0.1989
Operating efficiency
-0.0949
Leverage
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09