Tenet Healthcare Corporation (THC)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,652,000 | 19,309,000 | 19,100,000 | 18,691,000 | 18,369,000 | 18,331,000 | 18,348,000 | 18,611,000 | 18,679,000 | 19,267,000 | 18,533,000 | 17,726,000 | 17,697,000 | 17,142,000 | 17,794,000 | 18,454,000 | 18,479,000 | 18,292,000 | 18,213,000 | 18,159,000 |
| Property, plant and equipment | US$ in thousands | 5,983,000 | 6,260,000 | 6,268,000 | 6,319,000 | 6,159,000 | 6,291,000 | 6,259,000 | 6,296,000 | 6,094,000 | 6,162,000 | 6,166,000 | 6,592,000 | 6,347,000 | 6,618,000 | 6,703,000 | 6,786,000 | 6,471,000 | 7,001,000 | 6,995,000 | 6,996,000 |
| Fixed asset turnover | 3.28 | 3.08 | 3.05 | 2.96 | 2.98 | 2.91 | 2.93 | 2.96 | 3.07 | 3.13 | 3.01 | 2.69 | 2.79 | 2.59 | 2.65 | 2.72 | 2.86 | 2.61 | 2.60 | 2.60 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,652,000K ÷ $5,983,000K
= 3.28
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
From the data provided, we can see that Tenet Healthcare Corp.'s fixed asset turnover ratio has been consistently above 3.0 in the last eight quarters. This signifies that the company is efficiently using its fixed assets to generate revenue.
The slight fluctuations in the ratio over the quarters suggest some variations in the company's operational efficiency. Overall, the trend indicates a strong performance in utilizing fixed assets effectively to drive revenue growth.
It is important for Tenet Healthcare Corp. to continue monitoring and optimizing the utilization of its fixed assets to maintain and potentially improve its fixed asset turnover ratio in the future. This could involve strategic investments in assets, proper maintenance, and operational improvements to enhance efficiency and drive revenue growth.
Peer comparison
Dec 31, 2023