Tenet Healthcare Corporation (THC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 38.45 | 47.84 | 38.16 | 27.94 | 17.80 | 8.52 | 8.56 | 8.30 | 8.08 | 8.25 | 8.43 | 8.46 | 8.67 | 8.81 | 8.99 | 8.21 | 8.10 | 8.48 | 8.72 | 9.50 | |
| DOH | days | 9.49 | 7.63 | 9.56 | 13.06 | 20.50 | 42.84 | 42.63 | 43.96 | 45.16 | 44.24 | 43.32 | 43.13 | 42.12 | 41.41 | 40.62 | 44.43 | 45.04 | 43.02 | 41.88 | 38.41 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 38.45
= 9.49
The days of inventory on hand (DOH) for Tenet Healthcare Corporation have shown fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates an initial increase in DOH from 38.41 days on March 31, 2020, to a peak of 45.16 days on December 31, 2022. Subsequently, there was a decline in DOH to 20.50 days on December 31, 2023, followed by a significant drop to 13.06 days on March 31, 2024. This decrease continued as DOH decreased to just 9.49 days on December 31, 2024.
The decreasing trend in DOH during the latter part of the period may suggest that Tenet Healthcare Corporation has been managing its inventory more efficiently, turning over goods more quickly. A lower DOH signifies that the company is holding less inventory relative to its sales, which can lead to cost savings and improved working capital management. However, a very low DOH may also indicate the risk of stockouts or challenges in meeting customer demand.
It is important for Tenet Healthcare Corporation to assess the reasons behind the sharp decrease in DOH in the latter part of the period to ensure that it does not negatively impact the company's operations. Monitoring inventory turnover rates and aligning inventory levels with sales forecasts will be crucial for maintaining an optimal balance between managing costs and meeting customer demand effectively.
Peer comparison
Dec 31, 2024