Tenet Healthcare Corporation (THC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — |
| 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 | — | — | — | — | — | — | — |
The solvency ratios of Tenet Healthcare Corp. indicate the company's ability to meet its long-term financial obligations and manage debt levels effectively.
The debt-to-assets ratio has remained relatively stable around 0.55 to 0.56 over the quarters, indicating that approximately 55-56% of the company's assets are financed by debt. This suggests that Tenet Healthcare relies moderately on debt to finance its operations and investments.
The debt-to-capital ratio has shown a similar stable trend, hovering around 0.91 to 0.93, implying that debt accounts for approximately 91-93% of the company's capital structure. This ratio signifies a high level of financial leverage and dependency on debt financing.
The debt-to-equity ratio has shown an increasing trend, rising from 9.33 in Q4 2023 to 14.06 in Q1 2022. This signifies that the company is increasingly relying on debt to fund its operations compared to equity. A higher debt-to-equity ratio suggests higher financial risk and lower financial stability.
The financial leverage ratio, reflecting the company's total assets relative to equity, has also shown a consistent increase over the quarters, indicating a rising level of financial risk. This ratio has climbed from 17.61 in Q4 2023 to 25.24 in Q1 2022, highlighting the increasing use of debt to finance the company's activities.
Overall, the solvency ratios suggest that Tenet Healthcare Corp. has been progressively relying more on debt financing to support its operations and growth, which could potentially increase the company's financial risk and impact its long-term stability. Investors and stakeholders should closely monitor these ratios to assess the company's ability to manage its debt levels effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Tenet Healthcare Corp. has remained relatively stable over the past eight quarters, ranging from 2.87 to 3.09. This indicates that the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT) has been consistent.
Although the ratio fluctuated slightly quarter to quarter, it stayed within a narrow range, suggesting that the company has been able to generate enough operating income to comfortably meet its interest obligations. A higher interest coverage ratio typically indicates that a company is more capable of servicing its debt and is considered a positive sign for investors and creditors.
Overall, based on the trend observed, Tenet Healthcare Corp. appears to have a solid ability to cover its interest expenses, which contributes to its financial stability and indicates prudent financial management.