Tenet Healthcare Corporation (THC)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,510,000 | 2,311,000 | 2,339,000 | 2,288,000 | 2,333,000 | 2,548,000 | 2,966,000 | 2,999,000 | 2,871,000 | 3,040,000 | 2,297,000 | 2,182,000 | 1,989,000 | 1,523,000 | 1,554,000 | 1,483,000 | 1,537,000 | 1,477,000 | 1,495,000 | 1,501,000 |
| Interest expense (ttm) | US$ in thousands | 901,000 | 893,000 | 888,000 | 884,000 | 890,000 | 892,000 | 897,000 | 910,000 | 923,000 | 944,000 | 980,000 | 1,000,000 | 1,003,000 | 1,004,000 | 985,000 | 977,000 | 985,000 | 988,000 | 993,000 | 1,000,000 |
| Interest coverage | 2.79 | 2.59 | 2.63 | 2.59 | 2.62 | 2.86 | 3.31 | 3.30 | 3.11 | 3.22 | 2.34 | 2.18 | 1.98 | 1.52 | 1.58 | 1.52 | 1.56 | 1.49 | 1.51 | 1.50 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,510,000K ÷ $901,000K
= 2.79
To analyze Tenet Healthcare Corp.'s interest coverage, we look at the trend over the past eight quarters. The interest coverage ratio indicates the company's ability to pay its interest expenses from its earnings before interest and taxes (EBIT).
The interest coverage ratio for Tenet Healthcare Corp. has remained relatively stable over the past two years, ranging from 2.87 to 3.09. A ratio above 1 suggests that the company is generating enough operating income to cover its interest obligations.
The slight fluctuations in the interest coverage ratio may be indicative of variations in operating performance or changes in interest expenses. Despite these fluctuations, Tenet Healthcare Corp. has maintained a healthy interest coverage ratio above 2.5, indicating a comfortable ability to meet its interest payments.
Overall, the trend in Tenet Healthcare Corp.'s interest coverage ratio demonstrates a consistent ability to cover its interest expenses with operating income, providing a reassuring signal of financial health in this aspect.
Peer comparison
Dec 31, 2023