Tenet Healthcare Corporation (THC)

Short-term

Turnover ratios

Inventory turnover for Tenet Healthcare Corp. has consistently been reported as 0.00 over the past five years, indicating that the company is not efficiently managing its inventory levels or is possibly carrying excess inventory that is not being sold. This lack of turnover could tie up valuable resources and impact the company's liquidity.

On the other hand, receivables turnover has shown a consistent trend of improvement, increasing from 6.71 in 2019 to 7.06 in 2023. This suggests that the company is collecting its accounts receivable more efficiently, possibly tightening its credit policies or improving collection procedures. A higher receivables turnover ratio typically indicates that the company is able to collect its outstanding receivables in a timely manner, which is a positive indicator of liquidity.

Similar to inventory turnover, payables turnover for Tenet Healthcare Corp. has remained at 0.00 over the five-year period. This may indicate that the company is not managing its accounts payable effectively or has a long payment cycle, which could impact its relationships with suppliers.

Working capital turnover has shown fluctuations over the years, reaching a peak in 2019 at 21.09 and decreasing to 8.54 in 2023. This ratio measures how efficiently the company is utilizing its working capital to generate sales. The downward trend may suggest that the company is becoming less efficient in utilizing its working capital to drive revenue growth, which could indicate potential issues with liquidity management.

In conclusion, while Tenet Healthcare Corp. has shown improvements in accounts receivable turnover, the stagnant inventory turnover, and lack of movement in payables turnover raise concerns about the company's inventory and payables management practices. The decreasing trend in working capital turnover also warrants further investigation into the company's overall efficiency in utilizing its working capital resources.

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Average number of days

Days of Inventory on Hand (DOH) for Tenet Healthcare Corp. have not been provided in the data. However, looking at Days of Sales Outstanding (DSO), we see a decreasing trend from 55.46 days in 2019 to 51.72 days in 2023. This indicates that the company is collecting its accounts receivables more efficiently over the years.

Additionally, the Number of Days of Payables data is not available, so we cannot analyze the Payables Period.

Overall, the improvement in Days of Sales Outstanding suggests that Tenet Healthcare Corp. is managing its accounts receivables effectively, potentially leading to better cash flow and liquidity.

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Long-term

Tenet Healthcare Corp.'s long-term activity ratios provide insights into the company's efficiency in generating revenue from its assets over multiple years.

The fixed asset turnover ratio has shown a positive trend over the past five years, increasing from 2.69 in 2019 to 3.30 in 2023. This indicates that the company is utilizing its fixed assets more efficiently to generate revenue. A higher fixed asset turnover ratio implies that Tenet Healthcare is generating more revenue per dollar of fixed assets invested, which can be a positive sign of operational efficiency.

On the other hand, the total asset turnover ratio has fluctuated slightly over the same period, ranging from 0.68 in 2020 to 0.79 in 2019. In 2023, the total asset turnover ratio decreased to 0.73. This ratio measures the company's ability to generate sales from its total assets. A lower total asset turnover ratio can indicate that the company is not utilizing its total assets as efficiently to generate revenue.

Overall, Tenet Healthcare Corp. has shown improvement in its fixed asset turnover ratio over the years, indicating enhanced efficiency in utilizing its fixed assets. However, the total asset turnover ratio has been relatively stable and slightly lower in 2023, suggesting that the company may need to focus on optimizing the use of its total assets to increase revenue generation in the future.