Tenet Healthcare Corporation (THC)

Short-term

Turnover ratios

The analysis of Tenet Healthcare Corporation's activity ratios reveals the following trends:

1. Inventory Turnover:
- The company's inventory turnover has shown a generally increasing trend over the years, from 8.10 in 2020 to 25.44 in 2024.
- This indicates that the company is efficiently managing its inventory and selling its goods at a faster rate, which is a positive sign of operational efficiency.

2. Receivables Turnover:
- The data shows that no specific values were available for receivables turnover in any of the years provided.
- Without this information, it is difficult to assess how effectively the company is collecting on its accounts receivable.

3. Payables Turnover:
- Similarly, no information is available for payables turnover for the years in question.
- This makes it challenging to gauge the company's efficiency in paying off its obligations to suppliers and vendors.

4. Working Capital Turnover:
- The working capital turnover ratio has fluctuated over the years, peaking at 12.74 in 2022 and dropping to 6.13 in 2024.
- A higher working capital turnover ratio typically indicates that the company is generating more revenue from its working capital, but the significant decrease in 2024 may signal a change in operational efficiency or revenue generation.

In summary, Tenet Healthcare Corporation's inventory turnover has improved over the years, while the lack of data for receivables and payables turnover limits a comprehensive assessment of the efficiency of the company's overall working capital management.

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Average number of days

Based on the provided data, Tenet Healthcare Corporation's Days of Inventory on Hand (DOH) have shown a slight decrease from 45.04 days in December 2020 to 42.12 days in December 2021, before increasing to 45.16 days in December 2022. However, there was a significant drop to 41.79 days in December 2023, followed by a sharp decrease to just 14.35 days in December 2024.

Regarding Days of Sales Outstanding (DSO), there is no specific data available for analysis over the years provided, suggesting that information on this metric may not be readily accessible or may not be applicable for the company.

Similarly, the number of days of payables is also unavailable for analysis. This could indicate that data on the average number of days Tenet Healthcare takes to pay its creditors is not being reported or is not a significant focus area for the company.

In summary, Tenet Healthcare Corporation's activity ratios show fluctuations in Days of Inventory on Hand, while data on Days of Sales Outstanding and Number of Days of Payables is not provided, limiting a comprehensive analysis of the company's overall efficiency in managing its inventory, sales, and payables turnover.

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Long-term

The fixed asset turnover ratio for Tenet Healthcare Corporation has shown improvement over the years, increasing from 2.64 in 2020 to 3.03 in 2021 and then slightly decreasing to 2.97 in 2022. However, there is missing data for 2023 and 2024. This ratio indicates that the company generated $3.03 in revenue for every $1 of fixed assets in 2021.

Regarding the total asset turnover ratio, there has been a relatively stable performance with a slight increase over the years. The ratio was 0.65 in 2020, rose to 0.71 in both 2021 and 2022, further increased to 0.73 in 2023, and then slightly decreased to 0.71 in 2024. This ratio signifies that the company generated 0.71 times its total assets in revenue in both 2021 and 2022.

Overall, the trend in both fixed asset turnover and total asset turnover ratios indicates that Tenet Healthcare Corporation efficiently utilizes its assets to generate revenue, with a particularly notable improvement in fixed asset turnover up to 2021. However, the missing data for 2023 and 2024 limits a comprehensive analysis of the company's long-term activity ratios in those years.