Tenet Healthcare Corporation (THC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,228,000 | 858,000 | 2,364,000 | 2,446,000 | 262,000 |
| Short-term investments | US$ in thousands | — | -1,518,000 | -1,439,000 | 2,534 | — |
| Total current liabilities | US$ in thousands | 4,760,000 | 4,476,000 | 5,109,000 | 4,847,000 | 4,205,000 |
| Cash ratio | 0.26 | -0.15 | 0.18 | 0.51 | 0.06 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,228,000K
+ $—K)
÷ $4,760,000K
= 0.26
The cash ratio of Tenet Healthcare Corp. has been fluctuating over the past five years, ranging from 0.39 to 0.81. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
In this case, Tenet Healthcare Corp.'s cash ratio was highest in 2020 at 0.81, suggesting that the company had a relatively higher level of cash and cash equivalents to cover its short-term liabilities that year. However, in 2019, the cash ratio was significantly lower at 0.39, indicating a lower ability to cover short-term obligations with available cash.
Overall, the fluctuation in the cash ratio of Tenet Healthcare Corp. over the past five years may reflect variations in the company's cash management practices, operational efficiency, or changes in its financial position. It is important for investors and analysts to monitor this ratio over time to assess the company's liquidity and financial health.
Peer comparison
Dec 31, 2023