Tenet Healthcare Corporation (THC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,481,000 | 3,461,000 | 2,971,000 | 2,933,000 | 2,711,000 | 2,409,000 | 2,371,000 | 2,288,000 | 2,333,000 | 2,610,000 | 2,637,000 | 2,696,000 | 2,611,000 | 2,861,000 | 2,574,000 | 2,490,000 | 2,310,000 | 1,827,000 | 1,913,000 | 1,827,000 |
| Interest expense (ttm) | US$ in thousands | 826,000 | 850,000 | 875,000 | 898,000 | 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 |
| Interest coverage | 4.21 | 4.07 | 3.40 | 3.27 | 3.01 | 2.70 | 2.67 | 2.59 | 2.62 | 2.93 | 2.94 | 2.96 | 2.83 | 3.03 | 2.63 | 2.49 | 2.30 | 1.82 | 1.94 | 1.87 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,481,000K ÷ $826,000K
= 4.21
Tenet Healthcare Corporation's interest coverage ratio has shown a generally increasing trend over the past several quarters, indicating an improvement in the company's ability to cover its interest payments with its operating income.
The interest coverage ratio was relatively low in the first few quarters of the data provided, hovering around the range of 1.8 to 2.3 from March 2020 to December 2021. However, from March 2022 onwards, the ratio started to demonstrate a more substantial increase and consistently improved, reaching a peak of 4.21 by December 31, 2024.
This upward trend in interest coverage suggests that Tenet Healthcare Corporation has been managing its interest obligations more effectively over time, potentially indicating a stronger financial position and reduced risk of default due to lack of interest payment coverage.
Overall, the improving interest coverage ratio of Tenet Healthcare Corporation reflects positively on the company's financial health and ability to meet its debt obligations, which may instill confidence in investors and creditors.
Peer comparison
Dec 31, 2024