Tenet Healthcare Corporation (THC)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 remained relatively stable over the past eight quarters, ranging between 0.90 and 0.93. This ratio indicates the proportion of the company's capital structure that is financed by debt.
A higher debt-to-capital ratio suggests that the company relies more on debt to finance its operations and growth, which can increase financial risk. On the other hand, a lower ratio implies lower financial risk as the company is less dependent on debt financing.
In the case of Tenet Healthcare Corp., the consistent range of the debt-to-capital ratio indicates a moderate level of debt utilization in its capital structure. This balance between debt and equity financing may indicate a prudent financial strategy, as it allows the company to benefit from tax advantages of debt while not overly exposing itself to financial risk associated with high debt levels.
Overall, monitoring the debt-to-capital ratio over time can provide insights into the company's financial health and its ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023