Tenet Healthcare Corporation (THC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,481,000 | 3,461,000 | 2,971,000 | 2,933,000 | 2,711,000 | 2,409,000 | 2,371,000 | 2,288,000 | 2,333,000 | 2,610,000 | 2,637,000 | 2,696,000 | 2,611,000 | 2,861,000 | 2,574,000 | 2,490,000 | 2,310,000 | 1,827,000 | 1,913,000 | 1,827,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,171,000 | 3,834,000 | 3,475,000 | 3,453,000 | 1,608,000 | 1,464,000 | 1,343,000 | 1,233,000 | 1,142,000 | 1,235,000 | 1,087,000 | 1,056,000 | 1,028,000 | 722,000 | 261,000 | 123,000 | 28,000 | -374,000 | -257,000 | -358,000 |
| 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% | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,481,000K ÷ ($—K + $4,171,000K)
= 83.46%
Tenet Healthcare Corporation's return on total capital has exhibited significant fluctuations over the reported periods. The ratio was not available for the first three quarters of 2020 but surged to an exceptionally high 8,250.00% by the end of December 2020. Subsequently, the return on total capital decreased gradually but remained at elevated levels, indicating strong performance relative to the capital employed.
The ratio peaked in March 2021 at 2,024.39% and gradually declined over the following quarters, stabilizing in the range of 160-260% from March 2022 to December 2023. Notably, the return on total capital experienced a notable drop to 84.94% in March 2024 before showing a slight recovery in subsequent quarters.
Overall, the trend in Tenet Healthcare Corporation's return on total capital suggests considerable volatility, potentially influenced by changing financial performance and capital structure dynamics. The company's ability to maintain elevated levels of return on total capital implies efficient utilization of capital resources to generate profits, albeit with some fluctuations in performance.
Peer comparison
Dec 31, 2024