Tenet Healthcare Corporation (THC)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,652,000 | 19,309,000 | 19,100,000 | 18,691,000 | 18,369,000 | 18,331,000 | 18,348,000 | 18,611,000 | 18,679,000 | 19,267,000 | 18,533,000 | 17,726,000 | 17,697,000 | 17,142,000 | 17,794,000 | 18,454,000 | 18,479,000 | 18,292,000 | 18,213,000 | 18,159,000 |
| Receivables | US$ in thousands | 2,914,000 | 2,897,000 | 2,914,000 | 2,883,000 | 2,943,000 | 3,182,000 | 3,169,000 | 2,916,000 | 2,770,000 | 2,742,000 | 2,643,000 | 2,745,000 | 2,691,000 | 2,481,000 | 2,453,000 | 2,740,000 | 2,753,000 | 2,786,000 | 2,753,000 | 2,761,000 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,652,000K ÷ $2,914,000K
= 6.74
The receivables turnover ratio for Tenet Healthcare Corp. has shown a generally stable performance over the past eight quarters, ranging from 6.58 to 7.06. This ratio indicates the efficiency with which the company collects outstanding receivables from its customers. A higher turnover ratio suggests the company is collecting its receivables more quickly, which is a positive sign as it indicates effective credit management and liquidity.
The slight fluctuations in the ratio over the period indicate that Tenet Healthcare Corp. has been effectively managing its receivables. The ratio has consistently remained above 6, indicating that the company has been able to collect its outstanding receivables approximately 6 to 7 times a year on average.
Overall, the stable and relatively high receivables turnover ratio for Tenet Healthcare Corp. demonstrates good control over the company's accounts receivable and suggests a sound credit policy and efficient collection procedures. However, it is important for the company to continue monitoring and managing its receivables effectively to ensure a healthy cash flow and financial performance in the long term.
Peer comparison
Dec 31, 2023