Tenet Healthcare Corporation (THC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 20,665,000 | 20,972,000 | 20,916,000 | 20,895,000 | 20,548,000 | 20,159,000 | 19,894,000 | 19,450,000 | 19,174,000 | 19,040,000 | 19,133,000 | 19,449,000 | 19,485,000 | 19,544,000 | 19,207,000 | 17,901,000 | 17,640,000 | 17,531,000 | 17,542,000 | 18,454,000 |
| Total current assets | US$ in thousands | 7,682,000 | 8,759,000 | 7,955,000 | 7,821,000 | 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 |
| Total current liabilities | US$ in thousands | 4,310,000 | 5,538,000 | 5,493,000 | 5,416,000 | 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 |
| Working capital turnover | 6.13 | 6.51 | 8.50 | 8.69 | 8.54 | 10.46 | 10.79 | 11.79 | 12.74 | 11.06 | 11.28 | 13.32 | 9.91 | 12.81 | 8.19 | 10.12 | 7.67 | 8.92 | 7.43 | 14.27 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $20,665,000K ÷ ($7,682,000K – $4,310,000K)
= 6.13
The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.
Based on the data provided for Tenet Healthcare Corporation, the working capital turnover ratio has fluctuated over the reported periods. The ratio ranged from a low of 6.13 on December 31, 2024, to a high of 14.27 on March 31, 2020.
Some key observations include:
- The ratio peaked at 14.27 on March 31, 2020, and showed an initial decline before increasing again in subsequent periods.
- There was a notable decrease in the ratio from September 30, 2021, to December 31, 2021, followed by a recovery in the first half of 2022.
- The ratio experienced significant fluctuations in the latter part of 2023 and throughout 2024, with values below 10 in most quarters.
Overall, the trend in the working capital turnover ratio for Tenet Healthcare Corporation indicates varying levels of efficiency in utilizing working capital to generate revenue over the reporting periods. Further analysis and comparison with industry benchmarks may provide additional insights into the company's working capital management performance.
Peer comparison
Dec 31, 2024