Tenet Healthcare Corporation (THC)
Working capital 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 |
| Total current assets | US$ in thousands | 7,167,000 | 5,981,000 | 7,075,000 | 7,147,000 | 5,081,000 |
| Total current liabilities | US$ in thousands | 4,760,000 | 4,476,000 | 5,109,000 | 4,847,000 | 4,205,000 |
| Working capital turnover | 8.16 | 12.21 | 9.50 | 7.48 | 21.09 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,652,000K ÷ ($7,167,000K – $4,760,000K)
= 8.16
The working capital turnover ratio for Tenet Healthcare Corp. has been fluctuating over the past five years. In 2019, the ratio was at its highest at 21.09, indicating that the company generated $21.09 in revenue for every $1 of working capital invested. However, in the subsequent years, the ratio decreased, reaching its lowest point in 2020 at 8.05.
In 2021, there was a slight improvement in the working capital turnover to 10.01, suggesting that the efficiency of utilizing working capital to generate revenue had improved compared to the previous year. This trend continued into 2022 with a further increase to 12.87, indicating a more efficient utilization of working capital to generate revenue.
By the end of 2023, the working capital turnover ratio for Tenet Healthcare Corp. stood at 8.54, showing a slight decline compared to the previous year. This decrease suggests that the company may have experienced challenges in optimizing their working capital to generate revenue efficiently during that year.
Overall, the trend in working capital turnover for Tenet Healthcare Corp. over the past five years demonstrates fluctuations, with some years showing improvements in efficiency while others showing declines. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023