Tenet Healthcare Corporation (THC)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.78 1.58 1.45 1.44 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
Quick ratio 0.70 0.74 0.52 0.46 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
Cash ratio 0.70 0.74 0.52 0.46 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

The current ratio for Tenet Healthcare Corporation has shown fluctuations over the past few years, ranging from 1.28 to 1.78. This ratio indicates the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is generally preferable as it suggests a stronger ability to meet short-term obligations.

On the other hand, the quick ratio, reflecting the company's ability to meet short-term obligations with its most liquid assets, has also varied significantly, ranging from -0.15 to 0.74. A quick ratio below 1 may indicate potential liquidity issues, as it suggests the company may struggle to pay off immediate liabilities without relying on selling inventory.

The cash ratio, which is a more stringent measure of liquidity focusing solely on cash and cash equivalents, has exhibited similar fluctuations, ranging from -0.15 to 0.74. A negative cash ratio, as seen in one period, may signal a severe liquidity problem where cash and equivalents are insufficient to cover current liabilities.

Overall, while the current ratio for Tenet Healthcare Corporation generally indicates a reasonable liquidity position, the quick and cash ratios highlight the importance of carefully managing liquidity and ensuring that the company maintains adequate levels of liquid assets to meet its short-term obligations.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 9.49 7.63 9.56 13.06 20.50 42.84 42.63 43.96 45.16 44.24 43.32 43.13 42.12 41.41 40.62 44.43 45.04 43.02 41.88 38.41

The cash conversion cycle of Tenet Healthcare Corporation has displayed fluctuations over the reported periods. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash receipts from customers, stood at 38.41 days as of March 31, 2020. It increased to 45.16 days by December 31, 2022, reflecting a prolonged cycle.

However, there was a significant improvement in the cash conversion cycle by the end of December 31, 2023, where it decreased sharply to 20.50 days. This sharp reduction continued into the following periods, indicating more efficient management of working capital. By June 30, 2024, the cycle was at a low of 9.56 days, indicating that Tenet Healthcare Corporation was able to efficiently convert its investments into cash within a shorter timeframe.

Overall, the trend in the cash conversion cycle of Tenet Healthcare Corporation shows variability, but recent data suggest a positive direction towards a more efficient cycle, which can be beneficial for the company's liquidity and financial health.