Tenet Healthcare Corporation (THC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.94 | 17.61 | 23.78 | 26.83 | 968.07 |
Tenet Healthcare Corporation's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity.
- The Debt-to-assets ratio remained at 0.00 over the five-year period, suggesting that the company's total debt obligations are negligible compared to its total assets. This indicates a low risk of insolvency and financial distress.
- The Debt-to-capital ratio also remained at 0.00 throughout the period, indicating that the company's debt levels are minimal compared to its total capital, which includes both debt and equity. This reflects a favorable capital structure with a limited reliance on debt financing.
- The Debt-to-equity ratio remained at 0.00 for the entire period, indicating that the company has no debt in relation to its equity. This shows a strong financial position and indicates that the company has a lower risk of defaulting on its debt obligations.
- The Financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, decreased significantly from 968.07 in 2020 to 6.94 in 2024. This decline indicates that the company has been reducing its reliance on debt financing over the years, leading to a lower financial risk and increased financial stability.
Overall, the consistent low values of these solvency ratios suggest that Tenet Healthcare Corporation has a robust financial position characterized by minimal debt levels and a strong ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.35 | 2.79 | 2.79 | 2.78 | 1.56 |
Tenet Healthcare Corporation's interest coverage ratio has shown a positive trend over the past years, indicating an improvement in its ability to meet interest obligations. The interest coverage ratio increased from 1.56 in December 31, 2020, to 7.35 by December 31, 2024. This suggests that the company's operating income has become more than sufficient to cover its interest expenses. The consistent increase in the interest coverage ratio indicates better financial health and reduced risk of default on debt obligations. It implies that Tenet Healthcare Corporation has strengthened its financial position and is in a more stable position to meet its debt obligations through its operating profits.