Tenet Healthcare Corporation (THC)

Liquidity ratios

	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
Current ratio	1.51	1.43	1.44	1.39	1.34	1.40	1.39	1.31	1.38	1.28	1.46	1.36	1.47	1.34	1.42	1.32	1.21	1.22	1.13	1.23
Quick ratio	0.87	0.89	0.93	0.86	0.51	1.03	1.03	0.93	0.72	1.41	1.45	1.51	0.75	0.99	1.07	0.82	0.39	0.79	0.72	0.81
Cash ratio	0.26	0.24	0.22	0.18	-0.15	0.28	0.31	0.30	0.18	0.90	0.93	0.96	0.19	0.57	0.63	0.15	-0.27	0.08	0.06	0.07

Tenet Healthcare Corp.'s liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally improved from 1.31 in Q4 2022 to 1.51 in Q4 2023. This suggests that the company has strengthened its short-term liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also displayed variability but has generally been above 1, indicating that Tenet Healthcare Corp. has sufficient liquid assets to cover its short-term obligations without relying on inventory.

Furthermore, the cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) compared to current liabilities, has shown some variability but has generally been below 1. This implies that Tenet Healthcare Corp. may have limited immediate cash available to cover its short-term obligations.

Overall, while the current and quick ratios suggest that Tenet Healthcare Corp. has improved its liquidity position over the quarters analyzed, the cash ratio indicates that the company may need to continue monitoring its cash levels to ensure it can meet its short-term financial obligations.

Additional liquidity measure

		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
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

The cash conversion cycle for Tenet Healthcare Corp. has shown a slightly decreasing trend over the past quarters, with Q4 2023 showing the lowest value of 51.72 days compared to Q1 2022 with a high of 55.46 days. The company's ability to convert its resources efficiently into cash has been relatively stable, hovering around the 50-55 day range. This indicates that Tenet Healthcare Corp. takes approximately 51-54 days to convert its investments in inventory and other resources into cash through sales. A lower cash conversion cycle is generally preferred as it signifies a quicker turnaround in converting investments into cash, reflecting better liquidity management. It is important for Tenet Healthcare Corp. to continue monitoring and managing its cash conversion cycle effectively to ensure optimal working capital management and financial health.