Tenet Healthcare Corporation (THC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 14.35 | 41.79 | 45.16 | 42.12 | 45.04 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 14.35 | 41.79 | 45.16 | 42.12 | 45.04 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.35 + — – —
= 14.35
The cash conversion cycle of Tenet Healthcare Corporation has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle was 45.04 days, which decreased slightly to 42.12 days by December 31, 2021. However, the cycle increased again to 45.16 days by December 31, 2022, before dropping significantly to 41.79 days by December 31, 2023. The most notable change occurred by December 31, 2024, where the cash conversion cycle decreased sharply to 14.35 days.
Overall, the trend indicates that Tenet Healthcare Corporation has been able to manage its cash conversion cycle effectively in recent years. The decreasing trend in the cycle suggests that the company has been more efficient in converting its investments in inventory and accounts receivable into cash. This improvement could potentially indicate better working capital management and operational efficiency within the organization.
Peer comparison
Dec 31, 2024