Tenet Healthcare Corporation (THC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,608,000K)
= 0.00
The debt-to-capital ratio of Tenet Healthcare Corp has shown a decreasing trend from 2019 to 2023. The ratio was at 1.03 in 2019, indicating that the company's total debt was 103% of its total capital. This high ratio suggests a significant reliance on debt financing at that time.
In the subsequent years, the debt-to-capital ratio gradually decreased to 1.00 in 2020, 0.94 in 2021, 0.93 in 2022, and further declined to 0.90 in 2023. This trend indicates that Tenet Healthcare Corp has been reducing its debt relative to its total capital over the years.
A decreasing debt-to-capital ratio signifies improved financial health and reduced financial risk associated with high debt levels. However, it is essential to monitor the trend over time to ensure sustainable capital structure management.
Peer comparison
Dec 31, 2023