Tenet Healthcare Corporation (THC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,171,000 | 1,608,000 | 1,142,000 | 1,028,000 | 28,000 |
| ROE | 76.72% | 38.00% | 87.57% | 143.68% | 2,742.86% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,200,000K ÷ $4,171,000K
= 76.72%
Tenet Healthcare Corporation's Return on Equity (ROE) has displayed significant fluctuations over the past five years. The ROE stood at an impressive 2,742.86% as of December 31, 2020, indicating exceptional profitability in that year. However, there was a substantial decline in ROE to 143.68% by December 31, 2021, suggesting a significant decrease in the company's ability to generate profits relative to shareholders' equity.
Subsequently, Tenet Healthcare Corporation's ROE continued to decrease to 87.57% by December 31, 2022, and further to 38.00% by December 31, 2023. These declining trends may indicate challenges in effectively utilizing equity to generate profits or potentially increased equity base without a proportionate increase in profitability.
In contrast, there was a notable improvement in ROE to 76.72% by December 31, 2024, showing a positive reversal in the trend. This recovery might suggest potential strategic or operational adjustments that have positively impacted the company's profitability relative to shareholders' equity.
Overall, Tenet Healthcare Corporation's ROE has been volatile over the past five years, reflecting fluctuations in the company's profitability and efficiency in leveraging shareholder equity. Further analysis of the underlying factors driving these changes would be necessary to assess the company's financial performance accurately.
Peer comparison
Dec 31, 2024