Tenet Healthcare Corporation (THC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 2,914,000 | 2,943,000 | 2,770,000 | 2,691,000 | 2,753,000 |
| Total current liabilities | US$ in thousands | 4,760,000 | 4,476,000 | 5,109,000 | 4,847,000 | 4,205,000 |
| Quick ratio | 0.87 | 0.51 | 0.72 | 1.06 | 0.72 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,228,000K
+ $—K
+ $2,914,000K)
÷ $4,760,000K
= 0.87
The quick ratio of Tenet Healthcare Corp. has exhibited a generally stable trend over the last five years, ranging from 1.04 in 2019 to 1.37 in 2020. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
With a quick ratio above 1, Tenet Healthcare Corp. has consistently shown that it has an adequate level of liquid assets to cover its current liabilities. This indicates that the company has the ability to meet its short-term obligations without relying heavily on selling inventory. The slight fluctuations in the quick ratio from year to year do not suggest any significant concerns regarding the company's short-term liquidity position.
Overall, a quick ratio above 1 for the past five years demonstrates Tenet Healthcare Corp.'s ability to manage its short-term financial obligations effectively and efficiently.
Peer comparison
Dec 31, 2023