Tenet Healthcare Corporation (THC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 57.41% | 82.53% | 82.93% | 82.92% | 83.10% |
| Operating profit margin | 28.82% | 12.22% | 12.17% | 14.73% | 11.28% |
| Pretax margin | 25.40% | 7.87% | 7.01% | 9.69% | 3.80% |
| Net profit margin | 15.49% | 2.97% | 5.22% | 7.58% | 4.35% |
Tenet Healthcare Corporation's profitability ratios show a fluctuating trend over the years. The gross profit margin remained relatively stable around the high 80% range until 2024, where it dropped significantly to 57.41%. This may indicate a change in the company's cost structure or pricing strategy.
The operating profit margin showed some variability, with a notable increase in 2021 to 14.73%, followed by a slight decline in the following years. However, in 2024, there was a substantial improvement to 28.82%, indicating enhanced operational efficiency or revenue management strategies.
The pretax margin exhibited a similar pattern, with a significant increase in 2021 to 9.69%, followed by fluctuations in the subsequent years. The year 2024 saw a substantial surge to 25.40%, suggesting improved pre-tax profitability performance.
The net profit margin also experienced fluctuations, with a notable increase in 2021 to 7.58%, followed by a decline in the following years. However, in 2024, there was a sharp increase to 15.49%, indicating stronger bottom-line profitability.
Overall, Tenet Healthcare Corporation's profitability ratios present a mixed performance over the years, with some improvements in 2024 after fluctuations in the preceding years. Further analysis of the underlying factors driving these fluctuations would be beneficial to assess the company's overall financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.58% | 8.87% | 8.59% | 10.41% | 7.34% |
| Return on assets (ROA) | 11.06% | 2.16% | 3.68% | 5.36% | 2.83% |
| Return on total capital | 145.62% | 156.59% | 217.60% | 249.22% | 5,603.57% |
| Return on equity (ROE) | 76.72% | 38.00% | 87.57% | 143.68% | 2,742.86% |
Tenet Healthcare Corporation has shown a positive trend in profitability ratios over the years.
1. Operating return on assets (Operating ROA) has increased from 7.34% in 2020 to 20.58% in 2024. This indicates the efficiency of the company in generating operating income from its assets has improved significantly.
2. Return on assets (ROA) has also shown growth from 2.83% in 2020 to 11.06% in 2024. This metric evaluates the overall profitability of the company in generating earnings from its total assets.
3. Return on total capital has fluctuated but remained relatively high over the years, from 5,603.57% in 2020 to 145.62% in 2024. This ratio reflects how effectively the company utilizes its capital to generate profits.
4. Return on equity (ROE) has displayed a similar trend, increasing from 2,742.86% in 2020 to 76.72% in 2024. ROE measures the company's ability to generate profits from shareholders' equity.
Overall, the profitability ratios of Tenet Healthcare Corporation suggest that the company has been able to enhance its profitability and efficiency in utilizing its assets and capital over the years, leading to improved returns for its shareholders.