Tenet Healthcare Corporation (THC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,105,000 | 12,586,000 | 12,549,000 | 11,919,000 | 12,233,000 |
| Inventory | US$ in thousands | 411,000 | 405,000 | 384,000 | 368,000 | 310,000 |
| Inventory turnover | 31.89 | 31.08 | 32.68 | 32.39 | 39.46 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,105,000K ÷ $411,000K
= 31.89
Tenet Healthcare Corp. has consistently reported an inventory turnover ratio of 0.00 over the past five years, indicating that the company is not efficiently managing its inventory. A low inventory turnover ratio suggests that the company is either overstocking inventory or facing challenges in selling its products/services. This may lead to increased storage costs, obsolescence, and potential liquidity issues. Further analysis of the company's inventory management practices and strategies is warranted to identify and address the underlying causes of this low ratio.
Peer comparison
Dec 31, 2023
Company name
Symbol
Inventory turnover
Tenet Healthcare Corporation
THC
31.89
HCA Holdings Inc
HCA
14.84
Universal Health Services Inc
UHS
43.09