Tenet Healthcare Corporation (THC)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,665,000 | 20,548,000 | 19,174,000 | 19,485,000 | 17,640,000 |
| Total current assets | US$ in thousands | 7,682,000 | 7,167,000 | 5,981,000 | 7,075,000 | 7,147,000 |
| Total current liabilities | US$ in thousands | 4,310,000 | 4,760,000 | 4,476,000 | 5,109,000 | 4,847,000 |
| Working capital turnover | 6.13 | 8.54 | 12.74 | 9.91 | 7.67 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,665,000K ÷ ($7,682,000K – $4,310,000K)
= 6.13
The working capital turnover for Tenet Healthcare Corporation has exhibited fluctuations over the past five years. In 2020, the working capital turnover stood at 7.67, indicating that the company generated $7.67 in sales for every dollar of working capital invested.
There was a notable improvement in efficiency in 2021, with the working capital turnover increasing to 9.91, suggesting that the company was able to generate $9.91 in sales for each dollar of working capital.
In 2022, the working capital turnover further improved to 12.74, reflecting a significant increase in efficiency in utilizing working capital to generate sales.
However, in 2023, there was a decrease in the working capital turnover to 8.54, indicating a slight reduction in efficiency compared to the previous year.
The trend reversed in 2024, with the working capital turnover dropping to 6.13, signaling a decrease in the company's ability to generate sales relative to its working capital investment.
Overall, the working capital turnover for Tenet Healthcare Corporation has shown varying levels of efficiency in utilizing its working capital to drive sales over the past five years.
Peer comparison
Dec 31, 2024