Tenet Healthcare Corporation (THC)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 1,608,000 | 1,142,000 | 1,028,000 | 28,000 | -417,000 |
| ROE | 38.00% | 35.99% | 88.91% | 1,425.00% | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $611,000K ÷ $1,608,000K
= 38.00%
Tenet Healthcare Corp.'s return on equity (ROE) has fluctuated significantly over the past five years. In 2023, the ROE was 38.00%, which indicates that for every dollar of equity invested, the company generated a return of 38 cents. Compared to the previous year, the ROE increased from 35.99% in 2022, suggesting improved profitability and efficiency in the use of equity.
However, looking back to 2021, Tenet Healthcare Corp. experienced a notably high ROE of 88.91%. This substantial increase in ROE indicates that the company was able to generate significant profits relative to its equity base during that period. In contrast, in 2020, the ROE surged to a remarkable 1,425.00%, reflecting an exceptional return on equity investment, possibly due to unique circumstances or financial management decisions.
The absence of ROE data for 2019 limits the ability to provide a comprehensive trend analysis. Going forward, it will be essential to monitor Tenet Healthcare Corp.'s ROE performance to assess its ability to consistently generate returns for shareholders relative to the amount of equity invested in the company.
Peer comparison
Dec 31, 2023