Tenet Healthcare Corporation (THC)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 20,665,000 | 20,972,000 | 20,916,000 | 20,895,000 | 20,548,000 | 20,159,000 | 19,894,000 | 19,450,000 | 19,174,000 | 19,040,000 | 19,133,000 | 19,449,000 | 19,485,000 | 19,544,000 | 19,207,000 | 17,901,000 | 17,640,000 | 17,531,000 | 17,542,000 | 18,454,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 6,260,000 | 6,268,000 | 6,319,000 | 6,462,000 | 6,291,000 | 6,259,000 | 6,296,000 | 6,427,000 | 6,162,000 | 6,166,000 | 6,592,000 | 6,692,000 | 6,618,000 | 6,703,000 | 6,786,000 |
| Fixed asset turnover | — | — | — | — | — | 3.22 | 3.17 | 3.08 | 2.97 | 3.03 | 3.06 | 3.09 | 3.03 | 3.17 | 3.11 | 2.72 | 2.64 | 2.65 | 2.62 | 2.72 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $20,665,000K ÷ $—K
= —
Tenet Healthcare Corporation's fixed asset turnover ratio has shown a general upward trend over the past few years, indicating that the company has been more efficient in generating revenue from its fixed assets. The ratio has increased from around 2.6 in mid-2020 to approximately 3.0 by the end of 2022, with slight fluctuations in between.
The improvement in fixed asset turnover reflects management's ability to better utilize its fixed assets to generate sales. A higher fixed asset turnover ratio suggests that Tenet Healthcare Corporation is effectively managing its investments in property, plant, and equipment to support revenue growth.
However, there was a slight decline in the fixed asset turnover ratio in late 2022, dropping to 2.97 by the end of the year. This decrease may indicate a temporary slowdown in the efficiency of asset utilization, which could be attributed to various factors such as changes in operations, investments in new assets, or fluctuations in revenue.
The most recent available data shows a rebound in the fixed asset turnover ratio to 3.08 by March 31, 2023, and a further increase to 3.22 by September 30, 2023, implying a potential recovery in the efficiency of fixed asset utilization.
While the fixed asset turnover ratio for the latter part of 2023 appears favorable, it should be noted that there is missing data for the year 2024. Therefore, it would be important to monitor future financial reports to assess whether the trend in improving efficiency in utilizing fixed assets continues.
Peer comparison
Dec 31, 2024