Tenet Healthcare (Tenet Healthcare) Gross Margin % : 82.69% (As of Dec. 2023)

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What is Tenet Healthcare Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tenet Healthcare's Gross Profit for the three months ended in Dec. 2023 was $4,448 Mil. Tenet Healthcare's Revenue for the three months ended in Dec. 2023 was $5,379 Mil. Therefore, Tenet Healthcare's Gross Margin % for the quarter that ended in Dec. 2023 was 82.69%.

The historical rank and industry rank for Tenet Healthcare's Gross Margin % or its related term are showing as below:

THC' s Gross Margin % Range Over the Past 10 Years
Min: 82.53 Med: 83.53 Max: 84.16
Current: 82.53

During the past 13 years, the highest Gross Margin % of Tenet Healthcare was 84.16%. The lowest was 82.53%. And the median was 83.53%.

THC's Gross Margin % is ranked better than
87.97% of 607 companies
in the Healthcare Providers & Services industry
Industry Median: 41.24 vs THC: 82.53

Tenet Healthcare had a gross margin of 82.69% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tenet Healthcare was -0.20% per year.

Tenet Healthcare Gross Margin % Historical Data

The historical data trend for Tenet Healthcare's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Tenet Healthcare Gross Margin % Chart

Tenet Healthcare Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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83.46

83.10

82.92

82.93

82.53

Tenet Healthcare Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															82.77	82.25	82.47	82.69	82.69

Competitive Comparison of Tenet Healthcare's Gross Margin %

For the Medical Care Facilities subindustry, Tenet Healthcare's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Tenet Healthcare's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Tenet Healthcare's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tenet Healthcare's Gross Margin % falls into.

Tenet Healthcare Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Tenet Healthcare's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	16958	/	20548
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20548 - 3590)	/	20548
	=	82.53 %

Tenet Healthcare's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	4448	/	5379
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5379 - 931)	/	5379
	=	82.69 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Tenet Healthcare (NYSE:THC) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Tenet Healthcare had a gross margin of 82.69% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Tenet Healthcare Gross Margin % Related Terms

Thank you for viewing the detailed overview of Tenet Healthcare's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Tenet Healthcare (Tenet Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Tenet Healthcare Corp (NYSE:THC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

THC:Mexico THC1:Germany

Address

14201 Dallas Parkway, Dallas, TX, USA, 75254

Website

https://www.tenethealth.com

Tenet Healthcare is a Dallas-based healthcare services organization. It operates a collection of hospitals (about 60 as of June 2023) and over 550 ambulatory surgery centers and other outpatient facilities across the U.S., primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.

Executives

Richard W Fisher	director
Roy Blunt	director	2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Paola M Arbour	officer: EVP, Chief Information Officer	14201 DALLAS PARKWAY, DALLAS TX 75254
Stephen H Rusckowski	director	C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Thomas W Arnst	officer: EVP, Chief Admin. Officer & GC	14201 DALLAS PARKWAY, DALLAS TX 75254
Tammy Romo	director	C/O SOUTHWEST AIRINES CO., 2702 LOVE FIELD DR., DALLAS TX 75235
Daniel J Cancelmi	officer: Principal Accounting Officer	13737 NOEL ROAD, SUITE 100, DALLAS TX 75240
J Robert Kerrey	director	NEW SCHOOL UNIVERSITY, 66 W. 12TH STREET, NEW YORK NY 10036
Richard J Mark	director	1901 CHOUTEAU AVENUE MC-1310, ST. LOUIS MO 63103
Ronald A Rittenmeyer	director	5400 LEGACY DRIVE, PLANO TX 75024
Lisa Y Foo	officer: EVP, Commercial Ops	14201 DALLAS PARKWAY, DALLAS TX 75254
Audrey T. Andrews	officer: SVP and General Counsel	1445 ROSS AVENUE, SUITE 1400, DALLAS TX 75202
Meghan Fitzgerald	director	C/O VION PHARMACEUTICALS, INC., 4 SCIENCE PARK, NEW HAVEN CT 06511
Howard Hacker	officer: EVP, Chief Compliance Officer	14201 DALLAS PARKWAY, DALLAS TX 75254
Marie Quintana	officer: EVP, Marketing/Communications	14201 DALLAS PARKWAY, DALLAS TX 75254