Henry Schein Inc (HSIC)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.66 | 6.47 | 6.09 | 6.28 | 6.42 | |
| DOH | days | 54.82 | 56.46 | 59.94 | 58.10 | 56.87 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.66
= 54.82
The days of inventory on hand (DOH) for Henry Schein Inc have shown a fluctuating trend over the past five years from 2020 to 2024. The DOH increased slightly from 56.87 days in 2020 to 58.10 days in 2021, then further rose to 59.94 days in 2022. However, there was a decrease in DOH to 56.46 days in 2023, followed by a further drop to 54.82 days in 2024.
The increase in DOH from 2020 to 2022 indicates that Henry Schein may have been carrying more inventory relative to its sales during this period. This could be due to various factors such as changes in demand forecasting, supply chain disruptions, or inventory management strategies.
The subsequent decrease in DOH in 2023 and 2024 suggests an improvement in inventory management efficiency, as the company was able to reduce the number of days it held inventory on hand. A lower DOH is generally preferable as it indicates faster inventory turnover and reduced carrying costs.
Overall, a close monitoring of the DOH trend is crucial for Henry Schein Inc, as it reflects the effectiveness of the company's inventory management practices and can have implications for its working capital management and profitability.
Peer comparison
Dec 31, 2024