Tenet Healthcare Corporation (THC)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 611,000 | 411,000 | 914,000 | 399,000 | -232,000 |
| Revenue | US$ in thousands | 19,652,000 | 18,369,000 | 18,679,000 | 17,203,000 | 18,479,000 |
| Net profit margin | 3.11% | 2.24% | 4.89% | 2.32% | -1.26% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $611,000K ÷ $19,652,000K
= 3.11%
Net profit margin is a key financial ratio that reflects the percentage of revenue that translates into profit after deducting all expenses. Analyzing Tenet Healthcare Corp.'s net profit margin over the past five years reveals varying trends. In 2023, the net profit margin improved to 2.97% from 2.12% in 2022, indicating the company's ability to enhance profitability relative to its revenue. The significant increase in profitability compared to 2022 suggests effective cost management or revenue growth strategies implemented by the company.
In 2021, the net profit margin was relatively high at 4.65%, signaling strong profitability compared to the previous and subsequent years. This could indicate successful operational efficiencies or revenue generation initiatives during that period. Conversely, the net profit margin was lower in 2020 at 2.15%, which could be due to increased expenses or challenges affecting revenue generation.
The net profit margin was negative in 2019 at -1.26%, indicating a loss-making year for the company. This negative figure could suggest financial difficulties, uncontrolled expenses, or a decline in revenue during that period.
Overall, Tenet Healthcare Corp.'s net profit margin fluctuated over the past five years, with the company experiencing varying levels of profitability. The improvement in 2023 compared to 2022 is a positive sign, suggesting potential enhancements in efficiency or revenue generation strategies. However, further analysis of the underlying factors driving these changes would be necessary to gain a deeper understanding of the company's financial performance.
Peer comparison
Dec 31, 2023