Tenet Healthcare Corporation (THC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,510,000 | 2,333,000 | 2,871,000 | 1,989,000 | 1,537,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,608,000 | 1,142,000 | 1,028,000 | 28,000 | -417,000 |
| Return on total capital | 156.09% | 204.29% | 279.28% | 7,103.57% | — |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,510,000K ÷ ($—K + $1,608,000K)
= 156.09%
Tenet Healthcare Corp.'s return on total capital has been relatively consistent and stable over the past five years, ranging from 12.89% in 2019 to 16.20% in 2022. The company's return on total capital saw a slight decrease in 2020 to 14.66% but has gradually increased again in the following years, reaching 16.08% in 2023. This indicates that Tenet Healthcare Corp. has been effectively utilizing its total capital to generate returns for its investors. The consistent performance in this metric suggests that the company has been efficient in managing its capital structure and investments, potentially leading to sustained profitability and value creation for shareholders.
Peer comparison
Dec 31, 2023