Tenet Healthcare Corporation (THC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,510,000 | 2,333,000 | 2,871,000 | 1,989,000 | 1,537,000 |
| Interest expense | US$ in thousands | 901,000 | 890,000 | 923,000 | 1,003,000 | 985,000 |
| Interest coverage | 2.79 | 2.62 | 3.11 | 1.98 | 1.56 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,510,000K ÷ $901,000K
= 2.79
Tenet Healthcare Corp.'s interest coverage has shown a positive trend over the past five years, indicating an improving ability to meet its interest obligations. The interest coverage ratio has consistently increased from 1.88 in 2019 to 2.96 in 2023. This implies that the company's operating income is sufficient to cover its interest expenses nearly three times over in the most recent fiscal year. The steady improvement in the interest coverage ratio reflects enhanced financial stability and reduced risk of default on debt payments for Tenet Healthcare Corp.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Tenet Healthcare Corporation
THC
2.79
HCA Holdings Inc
HCA
4.54
Universal Health Services Inc
UHS
5.54