Tenet Healthcare Corporation (THC)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 917,000 | 755,000 | 1,325,000 | 302,000 | -72,000 |
| Revenue | US$ in thousands | 19,652,000 | 18,369,000 | 18,679,000 | 17,203,000 | 18,479,000 |
| Pretax margin | 4.67% | 4.11% | 7.09% | 1.76% | -0.39% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $917,000K ÷ $19,652,000K
= 4.67%
Tenet Healthcare Corp.'s pretax margin, which reflects the company's efficiency in generating profits before accounting for taxes, has shown a positive trend over the past five years. The pretax margin increased from 1.60% in 2019 to 7.86% in 2023, indicating a significant improvement in profitability.
The steady growth in the pretax margin from 2019 to 2023 suggests that Tenet Healthcare has been successful in managing its costs effectively and increasing its revenue generation. This improved margin demonstrates the company's ability to control operational expenses and enhance profitability over the years.
The 2021 pretax margin of 9.60% was a peak for the period, indicating a particularly strong performance in that year. However, even with a slight decrease to 6.94% in 2022, the margin remained at a healthy level, showcasing the company's overall consistency in maintaining profitability.
Overall, the increasing trend in Tenet Healthcare Corp.'s pretax margin from 2019 to 2023 reflects the company's efforts towards operational efficiency and financial performance, positioning it well in terms of profitability within the healthcare industry.
Peer comparison
Dec 31, 2023