Tenet Healthcare Corporation (THC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,801,000 | 3,590,000 | 3,273,000 | 3,328,000 | 2,982,000 |
| Inventory | US$ in thousands | 346,000 | 411,000 | 405,000 | 384,000 | 368,000 |
| Inventory turnover | 25.44 | 8.73 | 8.08 | 8.67 | 8.10 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,801,000K ÷ $346,000K
= 25.44
To analyze Tenet Healthcare Corporation's inventory turnover, we'll look at the trend over the past five years:
1. In December 2020, the inventory turnover was 8.10, indicating that the company turned over its inventory approximately 8.10 times during that year.
2. By December 2021, the inventory turnover increased to 8.67, showing an improvement in the efficiency of managing inventory.
3. The turnover ratio slightly decreased to 8.08 by December 2022, suggesting a slight decrease in the efficiency of inventory management.
4. However, by December 2023, the inventory turnover ratio increased to 8.73, indicating a return to a more efficient inventory management process.
5. The most significant change occurred by December 2024, where the inventory turnover surged to 25.44. This substantial increase may reflect more effective inventory management practices or changes in the company's operations.
Overall, the trend in Tenet Healthcare Corporation's inventory turnover shows some fluctuations but generally maintains a healthy level, with a notable spike in 2024, which could indicate improvements in inventory management efficiency or changes in business operations.
Peer comparison
Dec 31, 2024