HCANEUTRAL

Return on Equity (ROE)

-112.6%

Updated 896h ago

Sector Performance

2th percentile

HCA

-112.6%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

HCA's return on equity of -112.6% indicates the company is generating substantial losses relative to shareholder equity, meaning investors are losing $1.13 for every dollar of equity invested.

This performance is drastically worse than the healthcare sector median of 13.5%, placing HCA at the 3rd percentile among sector peers—a stark underperformance that suggests fundamental operational or financial challenges. The negative ROE has persisted consistently over the last four quarters at -112.6%, indicating this is not a temporary issue but a sustained problem affecting profitability. For investors, negative ROE raises concerns about capital efficiency and the company's ability to generate returns, though the NEUTRAL verdict suggests the situation warrants monitoring rather than immediate action based on this metric alone.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HCA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are HCA's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: CRSP (-31.2%), MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.