Tenet Healthcare Corporation (THC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,200,000 | 611,000 | 1,000,000 | 1,477,000 | 768,000 |
| Total assets | US$ in thousands | 28,936,000 | 28,312,000 | 27,156,000 | 27,579,000 | 27,106,000 |
| ROA | 11.06% | 2.16% | 3.68% | 5.36% | 2.83% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $3,200,000K ÷ $28,936,000K
= 11.06%
Tenet Healthcare Corporation's Return on Assets (ROA) has shown some fluctuations over the past five years. In December 2020, the ROA was 2.83%, indicating that the company generated $2.83 in profit for every $100 of assets it had.
By December 2021, the ROA improved to 5.36%, suggesting a more efficient utilization of assets to generate profits. This may be a positive sign of operational effectiveness and financial management.
In December 2022, the ROA decreased slightly to 3.68%, which could be due to changes in the company's asset base or profitability. However, the ROA remained at a relatively healthy level.
The following year, in December 2023, the ROA further declined to 2.16%. A decrease in ROA may indicate challenges in generating profits from the company's assets efficiently.
Notably, by December 2024, the ROA spiked to 11.06%, a significant improvement from the previous year. This may indicate a strong performance in utilizing assets to generate higher profits, potentially driven by strategic initiatives or improved operational efficiency.
Overall, the ROA trend for Tenet Healthcare Corporation has shown variability over the past five years, with fluctuations in efficiency in generating profits from its asset base. It would be important to further analyze the underlying factors contributing to these fluctuations to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024