Tenet Healthcare Corporation (THC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,074,000 | 2,518,000 | 2,485,000 | 2,562,000 | 1,569,000 |
| Interest expense | US$ in thousands | 826,000 | 901,000 | 890,000 | 923,000 | 1,003,000 |
| Interest coverage | 7.35 | 2.79 | 2.79 | 2.78 | 1.56 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,074,000K ÷ $826,000K
= 7.35
Tenet Healthcare Corporation's interest coverage ratio has shown an improving trend from 1.56 in December 2020 to 7.35 in December 2024. This indicates that the company's ability to cover its interest obligations with operating income has strengthened over the years. The significant increase in the interest coverage ratio suggests that Tenet Healthcare has become more efficient in managing its interest expenses, which is a positive sign for the company's overall financial health and sustainability. Overall, the trend in Tenet Healthcare's interest coverage ratio reflects improved financial stability and a stronger ability to meet its debt obligations.
Peer comparison
Dec 31, 2024