Tenet Healthcare Corporation (THC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,652,000 | 18,369,000 | 18,679,000 | 17,203,000 | 18,479,000 |
| Receivables | US$ in thousands | 2,914,000 | 2,943,000 | 2,770,000 | 2,691,000 | 2,753,000 |
| Receivables turnover | 6.74 | 6.24 | 6.74 | 6.39 | 6.71 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,652,000K ÷ $2,914,000K
= 6.74
The receivables turnover ratio for Tenet Healthcare Corp. has been relatively stable over the past five years, ranging from 6.58 to 7.10. This ratio measures how efficiently the company is collecting payments from its customers. A higher turnover ratio indicates that the company is collecting receivables more quickly.
The increase in receivables turnover from 2022 to 2023 suggests that the company improved its efficiency in collecting payments from customers during the most recent year. This could be attributed to better credit control policies, improved collection processes, or a more favorable payer mix.
Overall, Tenet Healthcare Corp. has shown consistent effectiveness in managing its accounts receivables turnover, which is a positive indicator of the company's financial health and management of its working capital.
Peer comparison
Dec 31, 2023