Tenet Healthcare Corporation (THC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 28,936,000 | 28,312,000 | 27,156,000 | 27,579,000 | 27,106,000 |
| Total stockholders’ equity | US$ in thousands | 4,171,000 | 1,608,000 | 1,142,000 | 1,028,000 | 28,000 |
| Financial leverage ratio | 6.94 | 17.61 | 23.78 | 26.83 | 968.07 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $28,936,000K ÷ $4,171,000K
= 6.94
The financial leverage ratio, which indicates the extent to which a company relies on debt financing, has shown a significant downtrend for Tenet Healthcare Corporation over the years.
As of December 31, 2020, the financial leverage ratio was exceptionally high at 968.07, suggesting that the company had a very high level of debt relative to its equity. However, there has been a notable improvement in the subsequent years.
By December 31, 2024, the financial leverage ratio had decreased substantially to 6.94, indicating a much lower dependence on debt financing compared to previous years. This trend suggests that Tenet Healthcare Corporation has been effectively managing its debt levels and improving its financial health.
Overall, the decreasing trend in the financial leverage ratio signifies a positive development for the company, as it indicates a reduced financial risk and a stronger balance sheet in recent years.
Peer comparison
Dec 31, 2024