Tenet Healthcare Corporation (THC)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 38.45 | 47.84 | 38.16 | 27.94 | 17.80 | 8.52 | 8.56 | 8.30 | 8.08 | 8.25 | 8.43 | 8.46 | 8.67 | 8.81 | 8.99 | 8.21 | 8.10 | 8.48 | 8.72 | 9.50 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 6.13 | 6.51 | 8.50 | 8.69 | 8.54 | 10.46 | 10.79 | 11.79 | 12.74 | 11.06 | 11.28 | 13.32 | 9.91 | 12.81 | 8.19 | 10.12 | 7.67 | 8.92 | 7.43 | 14.27 |
The activity ratios of Tenet Healthcare Corporation provide valuable insights into the efficiency of the company's operations.
1. Inventory Turnover: The inventory turnover ratio indicates how many times inventory is sold and replaced over a period. Tenet Healthcare's inventory turnover has been relatively stable over the years, ranging between 8.08 to 47.84. A sudden increase in the ratio towards the end of 2024 might indicate better inventory management or increase in sales.
2. Receivables Turnover: Unfortunately, specific data for receivables turnover is not available, which makes it challenging to assess how effectively the company collects on its receivables. A consistent or improving turnover ratio would be a positive sign.
3. Payables Turnover: Similar to receivables turnover, data for payables turnover is not provided, limiting our ability to evaluate how efficiently the company manages its payables.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company is using its working capital to generate revenue. Tenet Healthcare's working capital turnover has varied over the years, with higher ratios indicating better utilization of working capital to generate sales. There has been a slight decrease in the ratio towards the end of 2024, suggesting a potential decrease in revenue generation efficiency.
In conclusion, while Tenet Healthcare's inventory turnover appears stable and there are some positive trends in working capital turnover, the absence of data for receivables and payables turnover limits the comprehensive analysis of the company's overall activity ratios.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.49 | 7.63 | 9.56 | 13.06 | 20.50 | 42.84 | 42.63 | 43.96 | 45.16 | 44.24 | 43.32 | 43.13 | 42.12 | 41.41 | 40.62 | 44.43 | 45.04 | 43.02 | 41.88 | 38.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Tenet Healthcare Corporation's Days of Inventory on Hand (DOH) has fluctuated over the years, ranging from a high of 45.16 days as of December 31, 2022, to a low of 7.63 days as of September 30, 2024. This indicates the number of days it takes for the company to sell its inventory, with lower numbers generally being more favorable as it implies quicker turnover.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available in the provided information, making it challenging to assess the efficiency of the company in collecting receivables and paying off its obligations.
Overall, monitoring Tenet Healthcare Corporation's activity ratios, like DOH, DSO, and payables turnover, can provide insights into the company's operational efficiency and effectiveness in managing its working capital.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.71 | 0.71 | 0.71 | 0.72 | 0.73 | 0.73 | 0.73 | 0.72 | 0.71 | 0.70 | 0.72 | 0.73 | 0.71 | 0.75 | 0.72 | 0.67 | 0.65 | 0.67 | 0.67 | 0.77 |
Tenet Healthcare's fixed asset turnover ratio has shown a positive trend over the years, indicating an improvement in the efficiency of utilizing fixed assets to generate sales. The ratio increased steadily from 2.72 in March 2020 to a peak of 3.22 in September 2023 before stabilizing around 3.00 in the most recent periods.
Similarly, the total asset turnover ratio also exhibits an upward trend, reflecting the company's ability to generate revenue relative to its total assets. The ratio improved from 0.77 in March 2020 to 0.73-0.74 levels in the most recent periods, demonstrating consistent operational efficiency.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Tenet Healthcare is effectively utilizing its assets to generate revenue, which is a positive indicator of long-term operational performance and efficiency.