Tenet Healthcare Corporation (THC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,019,000 | 1,228,000 | 858,000 | 2,364,000 | 2,446,000 |
| Short-term investments | US$ in thousands | — | — | -1,518,000 | -1,439,000 | 2,534 |
| Total current liabilities | US$ in thousands | 4,310,000 | 4,760,000 | 4,476,000 | 5,109,000 | 4,847,000 |
| Cash ratio | 0.70 | 0.26 | -0.15 | 0.18 | 0.51 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,019,000K
+ $—K)
÷ $4,310,000K
= 0.70
The cash ratio for Tenet Healthcare Corporation has exhibited varying trends over the years. As of December 31, 2020, the cash ratio stood at 0.51, indicating that the company had $0.51 in cash and cash equivalents for every dollar of current liabilities. By December 31, 2021, the cash ratio decreased to 0.18, suggesting a lower level of liquidity relative to obligations.
Interestingly, by December 31, 2022, the cash ratio turned negative at -0.15, which may raise concerns about the company's ability to meet its short-term liabilities with its available cash reserves. However, the ratio improved significantly by December 31, 2023, reaching 0.26, reflecting a better liquidity position compared to the previous year.
As of December 31, 2024, the cash ratio further improved to 0.70, signaling a more robust ability to cover short-term obligations with readily available cash. Overall, fluctuations in the cash ratio indicate varying levels of liquidity and the company's capacity to meet its short-term financial obligations with cash on hand.
Peer comparison
Dec 31, 2024