Tenet Healthcare Corporation (THC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 35.63% | 18.80% | 30.30% | 47.18% | 64.39% | 82.54% | 82.61% | 82.63% | 82.93% | 82.93% | 82.96% | 82.99% | 82.92% | 83.04% | 82.97% | 83.11% | 83.10% | 83.11% | 83.26% | 83.32% |
| Operating profit margin | 16.15% | 15.44% | 12.99% | 12.68% | 12.15% | 11.46% | 11.76% | 11.76% | 12.17% | 13.38% | 15.50% | 15.42% | 14.73% | 15.55% | 11.96% | 12.19% | 11.28% | 8.72% | 8.85% | 7.96% |
| Pretax margin | 25.40% | 24.38% | 21.68% | 20.68% | 7.87% | 7.04% | 7.31% | 6.92% | 7.01% | 8.15% | 10.17% | 10.28% | 9.69% | 10.42% | 4.99% | 4.77% | 3.80% | 1.20% | 2.17% | 1.66% |
| Net profit margin | 15.49% | 14.91% | 13.17% | 12.53% | 3.72% | 3.94% | 4.83% | 5.23% | 5.22% | 5.12% | 6.04% | 5.64% | 4.69% | 5.52% | 2.26% | 2.25% | 2.26% | -0.07% | -0.28% | -0.65% |
Tenet Healthcare Corporation's profitability ratios demonstrate fluctuations over the reported periods. The gross profit margin remained relatively high, ranging from 82.54% to 83.32% until the end of 2023. However, there was a significant decline to 64.39% by December 31, 2023, and further down to 30.30% by June 30, 2024, possibly indicating challenges in controlling direct costs.
The operating profit margin showed some volatility, starting at 7.96% on March 31, 2020, peaking at 15.55% on September 30, 2021, and then declining slightly to 12.99% by June 30, 2024. This indicates fluctuations in operating efficiency and cost management over the reporting periods.
The pretax margin saw an upward trend, increasing from 1.66% on March 31, 2020, to 25.40% by December 31, 2024. This growth suggests improved pre-tax profitability over time, reaching a significant peak in profitability at the end of 2024.
The net profit margin also displayed growth from negative figures in 2020 to 15.49% by December 31, 2024. This indicates improved profit generation after overcoming initial losses, with a consistent upward trend in net profitability over the reporting periods.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.54% | 11.02% | 9.28% | 9.17% | 8.82% | 8.38% | 8.61% | 8.45% | 8.59% | 9.41% | 11.14% | 11.25% | 10.41% | 11.73% | 8.65% | 8.22% | 7.34% | 5.84% | 5.91% | 6.17% |
| Return on assets (ROA) | 11.06% | 10.64% | 9.41% | 9.06% | 2.70% | 2.88% | 3.54% | 3.76% | 3.68% | 3.60% | 4.34% | 4.11% | 3.31% | 4.16% | 1.63% | 1.52% | 1.47% | -0.05% | -0.19% | -0.50% |
| Return on total capital | 83.46% | 90.27% | 85.50% | 84.94% | 168.59% | 164.55% | 176.55% | 185.56% | 204.29% | 211.34% | 242.59% | 255.30% | 253.99% | 396.26% | 986.21% | 2,024.39% | 8,250.00% | — | — | — |
| Return on equity (ROE) | 76.72% | 81.53% | 79.28% | 75.85% | 47.51% | 54.23% | 71.56% | 82.48% | 87.57% | 78.95% | 106.35% | 103.79% | 88.91% | 149.45% | 166.28% | 327.64% | 1,425.00% | — | — | — |
Tenet Healthcare Corporation's profitability ratios show a positive trend over the analyzed period.
- Operating return on assets (Operating ROA) increased steadily from 6.17% as of March 31, 2020, to 11.54% as of December 31, 2024. This indicates the company's ability to generate profit from its operational assets improved consistently over time.
- Return on assets (ROA) experienced a more volatile pattern, starting negative at -0.50% on March 31, 2020, and reaching 11.06% by December 31, 2024. Despite fluctuations, ROA showed an overall positive trajectory, reflecting the company's effectiveness in generating earnings relative to its total assets.
- Return on total capital saw significant fluctuations from extremely high values in 2020 to lower levels over the following years, ending at 83.46% by December 31, 2024. These fluctuations may indicate changes in the company's capital structure and use of financial leverage.
- Return on equity (ROE) also exhibited a declining trend from 1,425.00% as of December 31, 2020, to 76.72% by December 31, 2024. This decrease signifies a reduced return to equity holders over the period, possibly due to changes in profitability and shareholder equity.
Overall, the profitability ratios suggest an improvement in Tenet Healthcare Corporation's operational efficiency and ability to generate returns for both asset providers and equity holders over the analyzed timeframe.