Henry Schein Inc (HSIC)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.66 | 6.85 | 7.21 | 7.04 | 6.47 | 4.84 | 4.76 | 4.52 | 4.45 | 6.53 | 6.57 | 6.38 | 6.28 | 4.72 | 4.80 | 4.33 | 4.37 | 4.51 | 4.66 | 5.38 | |
| DOH | days | 54.83 | 53.32 | 50.61 | 51.84 | 56.46 | 75.39 | 76.73 | 80.67 | 82.09 | 55.90 | 55.53 | 57.24 | 58.10 | 77.29 | 75.98 | 84.25 | 83.58 | 80.94 | 78.29 | 67.80 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.66
= 54.83
Henry Schein Inc's days of inventory on hand (DOH) measures the average number of days it takes for the company to sell its inventory. A decreasing trend in DOH over time, as seen in the data provided, indicates that the company is managing its inventory levels more efficiently.
From March 31, 2020, to June 30, 2021, there was a gradual increase in DOH, suggesting a potential build-up of inventory or slower inventory turnover. This trend reversed from December 31, 2021, onwards, with a noticeable decline in DOH. By the end of December 31, 2024, the DOH decreased significantly to 54.83 days, indicating a more efficient management of inventory levels.
A lower DOH is generally preferable as it signifies that inventory is selling at a faster rate, reducing the risk of obsolete stock and improving cash flow. However, it is essential to ensure that the reduction in DOH does not compromise the company's ability to meet customer demand.
Overall, the decreasing trend in Henry Schein Inc's DOH from 2021 to 2024 reflects a positive development in inventory management, potentially leading to improved financial performance and operational efficiency.
Peer comparison
Dec 31, 2024