Henry Schein Inc (HSIC)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.03 | 4.41 | 4.33 | 4.11 | 4.45 | 6.53 | 6.57 | 6.38 | 6.28 | 4.72 | 4.80 | 4.33 | 4.37 | 4.51 | 4.66 | 5.38 | 4.96 | 7.16 | 7.06 | 7.28 | |
| DOH | days | 60.54 | 82.77 | 84.34 | 88.76 | 82.09 | 55.90 | 55.53 | 57.24 | 58.10 | 77.29 | 75.98 | 84.25 | 83.58 | 80.94 | 78.29 | 67.80 | 73.62 | 51.01 | 51.70 | 50.13 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.03
= 60.54
Days of Inventory on Hand (DOH) is a financial ratio that indicates the average number of days a company holds its inventory before selling it. A lower DOH typically suggests efficient inventory management, while a higher DOH may indicate slow-moving inventory or potential overstocking.
Analyzing Henry Schein Inc's DOH over the past few quarters, we observe some fluctuations:
1. The DOH ranged from 50.13 days to 88.76 days over the past 5 years, with the highest value recorded in March 2023 and the lowest in March 2019.
2. The DOH saw a notable increase in the most recent quarter, reaching 88.76 days in March 2023, which may imply a slower turnover of inventory during that period.
3. The trend indicates that the company has experienced periods of fluctuation in inventory management efficiency, as seen in the varying DOH values quarter by quarter.
4. Comparing the DOH to industry benchmarks and historical performance, Henry Schein Inc may want to focus on optimizing inventory levels to ensure optimal working capital management and maximize operational efficiency.
In conclusion, the analysis of Henry Schein Inc's Days of Inventory on Hand reveals fluctuations in inventory management efficiency over the past few years, indicating opportunities for the company to fine-tune its inventory practices for improved performance.
Peer comparison
Dec 31, 2023