... HCA's financial flexibility has improved significantly in recent years as a result of organic growth in the business as well as proactive management of the capital structure. The company has industry-leading operating margins and generates consistent and ample discretionary FCF (operating cash flows less capital expenditures and distributions to minority interests). Board and Management Transition: The sponsors of a 2006 LBO previously directed HCA's financial strategy, but their ownership has been steadily decreasing since a 2011 IPO and HCA recently appointed four new independent members to the 13-member board of directors (BOD), bringing the total to seven. There was also a transition in senior management during the past year; the company appointed a new CEO and CFO, with both roles filled by individuals with a long tenure at the company. Shifting Priorities for Cash Deployment: Under the direction of the LBO sponsors, HCA's ratings were...
