Tenet Healthcare Corporation (THC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 28,312,000 | 27,590,000 | 27,157,000 | 27,067,000 | 27,156,000 | 27,076,000 | 26,621,000 | 26,650,000 | 27,579,000 | 25,913,000 | 26,565,000 | 27,579,000 | 27,106,000 | 26,187,000 | 26,250,000 | 23,823,000 | 23,365,000 | 23,357,000 | 23,207,000 | 23,158,000 |
| 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 |
| Financial leverage ratio | 17.61 | 18.85 | 20.22 | 21.95 | 23.78 | 21.92 | 24.49 | 25.24 | 26.83 | 35.89 | 101.78 | 224.22 | 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 downward trend since the fourth quarter of 2022. The ratio decreased from 23.78 in Q4 2022 to 17.61 in Q4 2023, indicating a reduction in the company's reliance on debt financing to support its operations and investments.
The decreasing trend in the financial leverage ratio suggests that the company may be in a more financially stable position, as lower leverage often implies lower risk of default. However, it is important to note that a very low leverage ratio may also indicate underutilization of debt for potential growth and expansion opportunities.
Overall, the declining trend in Tenet Healthcare Corp.'s financial leverage ratio indicates a possible improvement in the company's financial health and risk profile over the period analyzed.
Peer comparison
Dec 31, 2023