Tenet Healthcare Corporation (THC)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 11.57 | 11.64 | 11.49 | 11.79 | 11.93 | 11.84 | 11.64 | 11.57 | 11.30 | 10.93 | 10.68 | 11.40 | 11.46 | 10.99 | 10.59 | 9.80 | 9.42 | 9.27 | 9.30 | 9.30 |
| Days of sales outstanding (DSO) | days | 54.12 | 54.76 | 55.69 | 56.30 | 58.48 | 63.36 | 63.04 | 57.19 | 54.13 | 51.95 | 52.05 | 56.52 | 55.50 | 52.83 | 50.32 | 54.19 | 54.38 | 55.59 | 55.17 | 55.50 |
| Number of days of payables | days | 39.65 | 33.87 | 35.44 | 34.54 | 44.30 | 37.26 | 32.57 | 32.95 | 38.26 | 31.98 | 31.79 | 34.17 | 37.58 | 32.28 | 31.98 | 32.63 | 36.57 | 33.55 | 32.75 | 33.26 |
| Cash conversion cycle | days | 26.05 | 32.53 | 31.74 | 33.55 | 26.11 | 37.94 | 42.11 | 35.80 | 27.17 | 30.90 | 30.94 | 33.75 | 29.38 | 31.54 | 28.93 | 31.36 | 27.22 | 31.32 | 31.72 | 31.54 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.57 + 54.12 – 39.65
= 26.05
The cash conversion cycle of Tenet Healthcare Corp. has shown a slight improvement over the past quarters. In Q4 2023, the company's cash conversion cycle was 51.72 days, down from 55.46 days in the same period last year. This indicates that the company is managing its cash more efficiently, converting its investments in inventory and accounts receivable into cash at a faster pace.
Although there has been some fluctuation in the cash conversion cycle over the past year, overall, the trend has been towards a shorter cycle, which is a positive sign for the company's liquidity and operational efficiency. By reducing the time it takes to convert its resources into cash, Tenet Healthcare Corp. may be better positioned to meet its short-term obligations and fund its ongoing operations effectively.
Peer comparison
Dec 31, 2023