Tenet Healthcare Corporation (THC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,652,000 | 18,369,000 | 18,679,000 | 17,203,000 | 18,479,000 |
| Property, plant and equipment | US$ in thousands | 5,983,000 | 6,159,000 | 6,094,000 | 6,347,000 | 6,471,000 |
| Fixed asset turnover | 3.28 | 2.98 | 3.07 | 2.71 | 2.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,652,000K ÷ $5,983,000K
= 3.28
Tenet Healthcare Corp.'s fixed asset turnover has shown a generally increasing trend over the last five years, indicating improvement in the company's efficiency in generating revenue from its fixed assets. The ratio increased from 2.69 in 2019 to 3.30 in 2023, with fluctuations in between. This suggests that Tenet Healthcare Corp. has been more successful in utilizing its fixed assets to generate sales revenue over time.
A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to drive revenue, which could be attributed to operational improvements, better asset management, or increased demand for its services. This improvement in efficiency can lead to higher profitability and return on investment for the company.
Overall, the upward trend in fixed asset turnover for Tenet Healthcare Corp. is a positive sign of operational efficiency and effective management of its assets to generate revenue. However, it is essential to continue monitoring this ratio to ensure sustained efficiency and profitability in the future.
Peer comparison
Dec 31, 2023