Tenet Healthcare Corporation (THC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 28,312,000 | 27,156,000 | 27,579,000 | 27,106,000 | 23,365,000 |
| Total stockholders’ equity | US$ in thousands | 1,608,000 | 1,142,000 | 1,028,000 | 28,000 | -417,000 |
| Financial leverage ratio | 17.61 | 23.78 | 26.83 | 968.07 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $28,312,000K ÷ $1,608,000K
= 17.61
The financial leverage ratio of Tenet Healthcare Corp. has shown a declining trend over the past five years, decreasing from 968.07 in 2020 to 17.61 in 2023. This indicates that the company's reliance on debt financing has decreased significantly, which can be viewed as a positive sign as lower leverage levels generally imply lower financial risk. In 2023, the financial leverage ratio of 17.61 suggests that the company's assets are financed primarily through equity rather than debt. It is important to note that a lower financial leverage ratio could imply greater financial stability and flexibility for the company to weather economic downturns or unforeseen challenges. Overall, the decreasing trend in the financial leverage ratio reflects a more conservative capital structure for Tenet Healthcare Corp.
Peer comparison
Dec 31, 2023