Tenet Healthcare Corporation (THC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.04% | 32.92% | 32.81% | 32.61% | 32.53% | 33.73% | 33.85% | 33.70% | 33.60% | 51.96% | 50.66% | 52.16% | 52.41% | 50.87% | 52.50% | 51.77% | 52.11% | 51.62% | 52.04% | 52.12% |
| Operating profit margin | 12.77% | 11.97% | 12.25% | 12.24% | 12.70% | 13.90% | 16.17% | 16.11% | 15.37% | 15.78% | 12.39% | 12.31% | 11.24% | 8.88% | 8.73% | 8.04% | 8.32% | 8.07% | 8.21% | 8.27% |
| Pretax margin | 4.67% | 3.93% | 4.30% | 3.98% | 4.11% | 5.25% | 7.44% | 7.64% | 7.09% | 8.53% | 3.26% | 3.15% | 2.45% | -0.16% | 0.87% | 0.39% | 0.30% | -0.02% | 1.11% | 1.23% |
| Net profit margin | 3.11% | 2.43% | 2.61% | 2.21% | 2.24% | 3.04% | 4.77% | 5.14% | 4.89% | 6.29% | 3.05% | 3.02% | 3.00% | 0.67% | 0.44% | 0.04% | -0.57% | -0.72% | 0.50% | 0.55% |
Tenet Healthcare Corp. has maintained a consistent gross profit margin of 100% across all quarters, indicating the company's ability to effectively manage its cost of goods sold.
In terms of profitability, the operating profit margin has ranged from 11.57% to 13.17% over the past eight quarters, with Q4 2022 showing the highest figure at 13.17%. This suggests that the company has been able to generate profits from its core operations consistently, although there has been a slight decline in more recent quarters.
The pretax margin has fluctuated between 6.85% and 10.19% over the same period, with Q1 2022 and Q2 2022 recording the highest figures at 10.19% and 10.04%, respectively. This ratio indicates the proportion of income that the company retains after accounting for operating expenses and before taxes, showing a slightly downward trend in recent quarters.
The net profit margin, which reflects the company's bottom line profitability, has ranged from 2.11% to 4.88%. Q1 and Q2 2022 stand out as the quarters with the highest net profit margins at 4.88% and 4.52%, respectively. However, there has been a general decrease in net profit margin in more recent quarters, with Q4 2023 reporting the lowest figure at 2.97%.
Overall, while Tenet Healthcare Corp. has maintained solid profitability ratios, there are some signs of decreasing profitability in recent quarters. Monitoring and analyzing these ratios over time can provide valuable insights into the company's financial performance and help identify areas for improvement.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.87% | 8.38% | 8.61% | 8.45% | 8.59% | 9.41% | 11.14% | 11.25% | 10.41% | 11.73% | 8.65% | 7.91% | 7.34% | 5.82% | 5.92% | 6.23% | 6.58% | 6.32% | 6.44% | 6.48% |
| Return on assets (ROA) | 2.16% | 1.70% | 1.84% | 1.53% | 1.51% | 2.06% | 3.29% | 3.59% | 3.31% | 4.67% | 2.13% | 1.94% | 1.96% | 0.44% | 0.30% | 0.03% | -0.45% | -0.57% | 0.39% | 0.43% |
| Return on total capital | 156.09% | 157.86% | 174.16% | 185.56% | 204.29% | 206.32% | 272.86% | 284.00% | 279.28% | 421.05% | 880.08% | 1,773.98% | 7,103.57% | — | — | — | — | — | — | — |
| Return on equity (ROE) | 38.00% | 32.04% | 37.16% | 33.58% | 35.99% | 45.18% | 80.59% | 90.62% | 88.91% | 167.73% | 216.86% | 434.96% | 1,896.43% | — | — | — | — | — | — | — |
Tenet Healthcare Corp.'s profitability ratios show a positive trend in operating performance over the past year. The Operating Return on Assets (Operating ROA) remained relatively stable, ranging from 8.48% to 9.58%, indicating efficient utilization of assets to generate operating profits. This suggests effective management in generating income from assets in day-to-day operations.
The Return on Assets (ROA) fluctuated, with Q4 2022 and Q2 2022 showing the highest values of 2.06% and 3.29%, respectively. However, Q1 and Q3 2023 recorded lower ROA figures. This implies that Tenet Healthcare Corp. has had varying success in generating profits from its total assets over the examined periods.
Return on Total Capital remained consistently above 15%, indicating that the company is generating returns exceeding its total capital investment, reflecting efficient capital allocation and profitability relative to total invested capital.
The Return on Equity (ROE) shows significant variability, with Q2 2022 and Q1 2022 displaying exceptional values of 80.59% and 90.62%, respectively. The high ROE values demonstrate the company's ability to generate strong returns for its shareholders' equity investment, even though there is some fluctuation in performance across quarters.
Overall, while there are fluctuations in the profitability ratios of Tenet Healthcare Corp., the company has shown a consistent ability to generate income from its assets and capital, maintaining relatively strong profitability levels over the analyzed period.