Henry Schein Inc (HSIC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.55 | 6.58 | 8.74 | 8.53 | 7.07 | |
| DSO | days | 42.68 | 55.50 | 41.76 | 42.79 | 51.59 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.55
= 42.68
The Days Sales Outstanding (DSO) is a crucial indicator of a company's efficiency in collecting accounts receivable. A lower DSO signifies faster collection of receivables, which can improve cash flow and overall financial health.
Analyzing Henry Schein Inc's DSO over the years, we observe a decreasing trend from 51.59 days on December 31, 2020, to 42.68 days on December 31, 2024. This suggests that Henry Schein Inc has been improving its efficiency in collecting receivables over the years, which is a positive sign for the company's liquidity and operational performance.
However, there was a slight increase in DSO from 41.76 days on December 31, 2022, to 55.50 days on December 31, 2023, which may require further investigation. It is essential for the company to monitor and manage its accounts receivable effectively to maintain a healthy DSO ratio and ensure steady cash flow.
Overall, the decreasing trend in DSO for Henry Schein Inc indicates a positive impact on the company's financial performance and operational efficiency, but management should remain vigilant to address any fluctuations in the future.
Peer comparison
Dec 31, 2024