Tenet Healthcare Corporation (THC)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,510,000 | 2,311,000 | 2,339,000 | 2,288,000 | 2,333,000 | 2,548,000 | 2,966,000 | 2,999,000 | 2,871,000 | 3,040,000 | 2,297,000 | 2,182,000 | 1,989,000 | 1,523,000 | 1,554,000 | 1,483,000 | 1,537,000 | 1,477,000 | 1,495,000 | 1,501,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | -417,000 | -341,000 | -108,000 | -134,000 |
| Return on total capital | 156.09% | 157.86% | 174.16% | 185.56% | 204.29% | 206.32% | 272.86% | 284.00% | 279.28% | 421.05% | 880.08% | 1,773.98% | 7,103.57% | — | — | — | — | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 stable over the past eight quarters, ranging from a low of 15.50% in Q3 2023 to a high of 17.34% in Q1 2022. The company's performance in generating returns from its total capital has generally been strong, with the latest figure for Q4 2023 standing at 16.08%.
Although there is a slight downward trend in the most recent quarters compared to the higher figures seen in early 2022, the overall consistency of the return on total capital indicates effective management of the company's resources. This metric reflects Tenet Healthcare Corp.'s ability to utilize its capital efficiently to generate profits for its shareholders and demonstrates the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2023