# Tenet Healthcare Corporation (THC) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/THC/thesis · /stocks/THC/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: THC
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### THC — Financial Snapshot

#### Consolidated Income Statement Summary

| Metric (in millions) | FY 2022 | FY 2023 | FY 2024E |
|----------------------|---------|---------|----------|
| **Net Revenue** | $19,182 | $20,310 | ~$20,700 |
| Revenue Growth YoY | +5.1% | +5.9% | ~+2% |
| Cost of Services (excl. D&A) | ~$16,100 | ~$16,800 | ~$17,100 |
| **Gross Profit** | ~$3,082 | ~$3,510 | ~$3,600 |
| Gross Margin | ~16.1% | ~17.3% | ~17.4% |
| SG&A / Other Operating | ~$900 | ~$950 | ~$970 |
| **Adjusted EBITDA** | ~$2,900 | ~$3,300 | ~$3,500 |
| Adjusted EBITDA Margin | ~15.1% | ~16.3% | ~16.9% |
| Depreciation & Amortization | ~$900 | ~$900 | ~$880 |
| **Adjusted EBIT** | ~$2,000 | ~$2,400 | ~$2,620 |
| Interest Expense | ~$770 | ~$740 | ~$700 |
| Other / Non-recurring | $(200) | $(100) | $(50) |
| **Pre-tax Income (Adjusted)** | ~$1,030 | ~$1,560 | ~$1,870 |
| Income Tax Expense | ~$270 | ~$390 | ~$465 |
| Effective Tax Rate | ~26% | ~25% | ~25% |
| **Net Income (Adjusted)** | ~$760 | ~$1,170 | ~$1,405 |
| Non-controlling Interests | ~$(270) | ~$(320) | ~$(370) |
| **Net Income Attr. to THC** | ~$490 | ~$850 | ~$1,035 |
| **Adjusted EPS (Diluted)** | ~$4.80 | ~$8.50 | ~$10.50 |
| Diluted Shares (M) | ~102 | ~100 | ~99 |

Note: Figures blend reported results and management-adjusted metrics. FY 2024E = estimates based on guidance and quarterly trajectory. GAAP results include non-cash impairments, restructuring charges, and gains/losses on divestitures that are excluded from adjusted figures.

#### GAAP vs. Adjusted Reconciliation (Key Items)

| Item | FY 2022 | FY 2023 |
|------|---------|---------|
| Reported GAAP Net Income (Loss) | ~$(273)M | ~$611M |
| +Impairment charges | ~$430M | ~$80M |
| +Restructuring/transaction costs | ~$80M | ~$70M |
| +/(−) Gains on divestitures | ~$(70)M | ~$(50)M |
| +Stock-based compensation | ~$85M | ~$90M |
| **Adjusted Net Income** | ~$490M | ~$850M |

Note: FY 2022 GAAP net loss largely driven by goodwill impairment charges on certain hospital market groups.

#### Segment EBITDA Breakdown

| Segment | FY 2022 EBITDA | FY 2022 Margin | FY 2023 EBITDA | FY 2023 Margin |
|---------|----------------|----------------|----------------|----------------|
| Hospital Operations | ~$1,750M | ~14% | ~$1,900M | ~14.5% |
| Ambulatory Care (USPI) | ~$1,050M | ~32% | ~$1,300M | ~34% |
| Corporate/Eliminations | ~$(350)M | — | ~$(350)M | — |
| **Consolidated Adj. EBITDA** | ~$2,900M | ~15.1% | ~$3,300M | ~16.3% |

**Key insight**: USPI (~35% of revenues) generates ~40% of EBITDA and its margin (~34–38%) is 2x+ the Hospital segment margin (~14%). As USPI grows, blended margins expand — the core re-rating thesis.

#### Earnings Per Share Trajectory

| Year | Adj. EPS | YoY Growth | GAAP EPS |
|------|----------|-----------|----------|
| FY 2020 | ~$2.50 | N/M (COVID) | ~$(7.50) |
| FY 2021 | ~$5.20 | +108% | ~$3.80 |
| FY 2022 | ~$4.80 | −8% | ~$(2.70) |
| FY 2023 | ~$8.50 | +77% | ~$5.60 |
| FY 2024E | ~$10.50 | +24% | ~$8.00 |

Notes on volatility:
- FY 2022 EPS decline: higher interest expense, elevated labor costs, normalization of COVID-era benefits
- FY 2023 surge: margin recovery + USPI growth + buybacks; surgical volumes recovered strongly
- FY 2024E: Continued USPI growth + operational leverage + reduced share count

#### Key Profitability Metrics

| Metric | FY 2022 | FY 2023 | FY 2024E |
|--------|---------|---------|----------|
| Gross Margin | 16.1% | 17.3% | 17.4% |
| Adjusted EBITDA Margin | 15.1% | 16.3% | 16.9% |
| Adjusted EBIT Margin | ~10.4% | ~11.8% | ~12.7% |
| Adjusted Net Margin | ~4.1% | ~5.8% | ~6.8% |
| Interest Coverage (EBITDA/Int.) | ~3.8x | ~4.5x | ~5.0x |

#### Cash Flow Summary

| Metric (in millions) | FY 2022 | FY 2023 |
|----------------------|---------|---------|
| Operating Cash Flow | ~$1,500 | ~$1,800 |
| Capex | ~$(800) | ~$(800) |
| **Free Cash Flow** | ~$700 | ~$1,000 |
| Divestiture Proceeds | ~$500 | ~$200 |
| Share Repurchases | ~$(500) | ~$(600) |
| Debt Repayment (net) | ~$(200) | ~$(300) |

**Free cash flow generation** is strong and growing, supporting both deleveraging and buybacks. FCF conversion (FCF/Adjusted Net Income) is approximately 90–100%.

#### Quality of Earnings Assessment

- **Revenue quality**: High — primarily patient service revenue under multi-year managed care contracts
- **Earnings persistence**: USPI EBITDA highly visible; hospital EBITDA more volatile (labor, payer mix)
- **Non-recurring charges**: Frequent impairment and restructuring charges make GAAP earnings less meaningful; adjusted metrics are appropriate
- **Working capital**: Hospitals have high DSO (~55–65 days) but predictable; ASCs have much faster collections (~30 days)
- **Cash conversion**: Strong; minimal working capital build given service business

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/THC/fundamental

## Navigation

- Overview: /stocks/THC
- Financials (this page): /stocks/THC/financials
- Thesis: /stocks/THC/thesis
- Investment Memo: /stocks/THC/memo
- Coverage universe: /stocks