Tenet Healthcare Corporation (THC)
Debt-to-equity 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-equity 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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,608,000K
= 0.00
The debt-to-equity ratio of Tenet Healthcare Corp. has been on a decreasing trend from Q4 2022 to Q4 2023. This ratio indicates that the company has been using more debt to finance its operations compared to equity. A higher debt-to-equity ratio suggests that the company relies more on borrowing, which can increase financial risk.
The significant decrease in the debt-to-equity ratio over the past four quarters may indicate that the company is actively reducing its debt levels or increasing its equity position. This could be a positive sign as lower debt levels typically lead to lower interest expenses and reduced financial risk for the company.
Despite the improving trend, the current debt-to-equity ratio of 9.33 in Q4 2023 still suggests that Tenet Healthcare Corp. has a relatively high level of debt compared to equity. It is important for the company to continually monitor and manage its debt levels to ensure sustainable financial health and flexibility in the long term.
Peer comparison
Dec 31, 2023