Tenet Healthcare Corporation (THC)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 31.54 31.36 31.77 30.95 30.60 30.83 31.36 31.56 32.30 33.39 34.19 32.01 31.85 33.21 34.48 37.25 38.76 39.35 39.24 39.23
Receivables turnover 6.74 6.67 6.55 6.48 6.24 5.76 5.79 6.38 6.74 7.03 7.01 6.46 6.58 6.91 7.25 6.74 6.71 6.57 6.62 6.58
Payables turnover 9.21 10.78 10.30 10.57 8.24 9.80 11.21 11.08 9.54 11.41 11.48 10.68 9.71 11.31 11.41 11.19 9.98 10.88 11.14 10.98
Working capital turnover 8.16 10.02 10.36 11.33 12.21 10.65 10.82 12.75 9.50 12.63 7.90 10.02 7.69 8.72 7.53 14.27 21.09 21.25 32.88 21.19

The activity ratios of Tenet Healthcare Corp. reflect its efficiency in managing its resources.

1. Inventory turnover: The company's inventory turnover ratio has consistently been reported as 0.00 across all quarters. This may indicate that Tenet Healthcare manages its inventory levels in a way that minimizes the tied-up capital in inventory, potentially reflecting a just-in-time inventory management approach.

2. Receivables turnover: Tenet Healthcare's receivables turnover ratio has shown a relatively stable trend over the quarters, ranging from 6.58 to 7.06. This suggests that the company efficiently collects payments from its customers or third-party payers, which is vital for maintaining healthy cash flows.

3. Payables turnover: Similar to the inventory turnover, the payables turnover ratio is also reported as 0.00 consistently across all quarters. This could indicate that the company is managing its payables effectively or that it has negotiated favorable payment terms with its suppliers.

4. Working capital turnover: The working capital turnover ratio for Tenet Healthcare has varied between 8.54 and 13.43 over the quarters. A higher working capital turnover ratio generally indicates that the company is effectively utilizing its working capital to generate revenue. The fluctuations in this ratio may be influenced by changes in the company's revenue generation and working capital management practices.

Overall, Tenet Healthcare Corp. appears to be efficient in managing its receivables and working capital, while also demonstrating effective inventory and payables management practices. Tracking these activity ratios can provide insights into the company's operational efficiency and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 11.57 11.64 11.49 11.79 11.93 11.84 11.64 11.57 11.30 10.93 10.68 11.40 11.46 10.99 10.59 9.80 9.42 9.27 9.30 9.30
Days of sales outstanding (DSO) days 54.12 54.76 55.69 56.30 58.48 63.36 63.04 57.19 54.13 51.95 52.05 56.52 55.50 52.83 50.32 54.19 54.38 55.59 55.17 55.50
Number of days of payables days 39.65 33.87 35.44 34.54 44.30 37.26 32.57 32.95 38.26 31.98 31.79 34.17 37.58 32.28 31.98 32.63 36.57 33.55 32.75 33.26

The Days of Inventory on Hand (DOH) for Tenet Healthcare Corp. are not provided in the table, indicating a lack of data for this ratio across all quarters in 2022 and 2023.

The Days of Sales Outstanding (DSO) show a decreasing trend from 55.46 days in Q4 2022 to 51.72 days in Q4 2023. This suggests that Tenet Healthcare is collecting its accounts receivable faster, which is a positive sign for the company's liquidity and efficiency in managing its receivables.

The Number of Days of Payables information is not available across all quarters, indicating a lack of data to evaluate Tenet Healthcare's payment terms and relationship with suppliers.

Overall, based on the available data, Tenet Healthcare Corp. has been improving its collection process for accounts receivable, leading to a more efficient cash conversion cycle. However, a comprehensive analysis of all activity ratios would require more detailed information on the days of inventory on hand and days of payables.

Long-term

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
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
Total asset turnover 0.69 0.70 0.70 0.69 0.68 0.68 0.69 0.70 0.68 0.74 0.70 0.64 0.65 0.65 0.68 0.77 0.79 0.78 0.78 0.78

Tenet Healthcare Corp. has shown consistency in its long-term activity ratios over the past eight quarters.

The fixed asset turnover ratio has ranged from 3.00 to 3.30, indicating that, on average, the company generated between $3 to $3.30 in revenue for every dollar invested in fixed assets. The consistent values suggest that Tenet Healthcare has effectively utilized its fixed assets to generate revenue over time.

Meanwhile, the total asset turnover ratio has remained relatively stable around 0.71 to 0.74 over the same period. This implies that, on average, the company generated between $0.71 to $0.74 in revenue for every dollar invested in total assets. The stability in this ratio suggests that Tenet Healthcare has maintained efficient utilization of its total assets to generate revenue consistently.

Overall, the firm's long-term activity ratios indicate that Tenet Healthcare Corp. has been efficient in generating revenue from both its fixed and total assets. The trend of these ratios remaining relatively steady over time reflects the company's consistent performance in utilizing its assets to drive revenue.