Tenet Healthcare Corporation (THC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,310,000 | 4,760,000 | 4,476,000 | 5,109,000 | 4,847,000 |
| Quick ratio | 0.70 | 0.26 | -0.15 | 0.18 | 0.51 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,019,000K
+ $—K
+ $—K)
÷ $4,310,000K
= 0.70
The quick ratio of Tenet Healthcare Corporation has exhibited fluctuations over the past five years as per the provided data. As of December 31, 2020, the quick ratio stood at 0.51, indicating that the company had $0.51 of liquid assets available to cover each dollar of current liabilities. However, there was a significant decrease in the quick ratio by the end of 2021, dropping to 0.18, suggesting a potential liquidity strain as the ratio fell below 1.
By December 31, 2022, the quick ratio turned negative to -0.15, which may raise concerns regarding the company's ability to meet its short-term obligations using its most liquid assets. Subsequently, by the end of 2023, the quick ratio improved to 0.26, indicating a slight recovery in liquidity. The most recent data point as of December 31, 2024, shows a quick ratio of 0.70, reflecting a substantial increase in liquidity compared to the previous years.
Overall, the erratic nature of the quick ratio over the years suggests fluctuations in Tenet Healthcare Corporation's ability to meet its short-term financial obligations with its quick assets. It is essential for investors and stakeholders to closely monitor the company's liquidity position, as a consistently low quick ratio may indicate potential cash flow challenges.
Peer comparison
Dec 31, 2024