Tenet Healthcare Corporation (THC)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,608,000K
= 0.00
The debt-to-equity ratio of Tenet Healthcare Corp. has fluctuated over the past five years. As of December 31, 2023, the ratio stood at 9.33, indicating that the company had higher debt levels relative to its equity. This ratio decreased from 13.20 in December 31, 2022, suggesting an improvement in the company's leverage position.
The decrease in the debt-to-equity ratio from 2022 to 2023 may indicate that Tenet Healthcare Corp. has been successful in reducing its debt levels or increasing its equity base during the period. A lower debt-to-equity ratio is typically viewed as a positive sign by investors and creditors as it indicates lower financial risk and better financial health.
Looking further back, in 2021 and 2020, the company had higher debt-to-equity ratios of 15.22 and 561.39, respectively. The exceptionally high ratio in 2020 may have been due to significant debt levels relative to equity, which could have raised concerns about the company's ability to service its debt obligations.
It is important to note that the debt-to-equity ratio of Tenet Healthcare Corp. for December 31, 2019, is not available in the data provided. Analyzing trends in the debt-to-equity ratio over multiple years can help investors and analysts assess the company's capital structure, financial risk, and overall performance.
Peer comparison
Dec 31, 2023