Tenet Healthcare Corporation (THC)
Working capital 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 |
| Total current assets | US$ in thousands | 7,167,000 | 6,359,000 | 5,995,000 | 5,869,000 | 5,981,000 | 5,998,000 | 6,064,000 | 6,128,000 | 7,075,000 | 6,905,000 | 7,417,000 | 6,699,000 | 7,147,000 | 7,808,000 | 7,947,000 | 5,388,000 | 5,081,000 | 4,789,000 | 4,704,000 | 4,582,000 |
| Total current liabilities | US$ in thousands | 4,760,000 | 4,432,000 | 4,152,000 | 4,219,000 | 4,476,000 | 4,276,000 | 4,368,000 | 4,668,000 | 5,109,000 | 5,379,000 | 5,071,000 | 4,930,000 | 4,847,000 | 5,843,000 | 5,585,000 | 4,095,000 | 4,205,000 | 3,928,000 | 4,150,000 | 3,725,000 |
| Working capital turnover | 8.16 | 10.02 | 10.36 | 11.33 | 12.21 | 10.65 | 10.82 | 12.75 | 9.50 | 12.63 | 7.90 | 10.02 | 7.69 | 8.72 | 7.53 | 14.27 | 21.09 | 21.25 | 32.88 | 21.19 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,652,000K ÷ ($7,167,000K – $4,760,000K)
= 8.16
The working capital turnover for Tenet Healthcare Corp. has exhibited fluctuating trends over the past eight quarters. The company's working capital turnover ratio has ranged from a low of 8.54 in Q4 2023 to a high of 13.43 in Q1 2022.
A higher working capital turnover ratio typically indicates that the company is efficiently managing its working capital to generate sales. This efficiency can be attributed to factors such as effective inventory management, accounts receivable collection, and accounts payable management.
The declining trend in the working capital turnover from Q1 2022 to Q4 2023 indicates a potential deterioration in the company's ability to generate sales from its working capital. This could be a cause for concern as it may reflect inefficiencies in working capital management.
Overall, Tenet Healthcare Corp.'s working capital turnover has shown variability, suggesting that the company's management of working capital needs to be closely monitored to ensure optimal efficiency and effectiveness in utilizing its resources.
Peer comparison
Dec 31, 2023