Henry Schein Inc (HSIC)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.51 | 7.47 | 7.94 | 7.51 | 6.58 | 8.02 | 8.54 | — | 8.74 | 8.34 | 9.01 | 8.75 | 8.53 | 7.88 | 8.75 | 8.04 | 7.08 | 6.95 | 8.58 | 8.52 | |
| DSO | days | 42.89 | 48.83 | 46.00 | 48.60 | 55.50 | 45.50 | 42.74 | — | 41.76 | 43.75 | 40.50 | 41.71 | 42.79 | 46.33 | 41.70 | 45.42 | 51.53 | 52.54 | 42.55 | 42.86 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.51
= 42.89
The Days of Sales Outstanding (DSO) ratio, also known as the average collection period, measures how long it takes for a company to collect cash from its credit sales. For Henry Schein Inc, the DSO has fluctuated over the periods provided in the data.
Analyzing the trend, we observe that the company's DSO was relatively stable around the low 40s days in the earlier periods, indicating efficient collection of receivables. However, there was an increase in DSO in the later periods, reaching a peak of 55.50 days on December 31, 2023, before gradually decreasing.
A higher DSO may suggest potential issues with the collection of accounts receivable, such as extending credit to customers with poor payment histories or industry-specific challenges. This could impact cash flow and liquidity, as longer collection periods tie up working capital.
On the other hand, a lower DSO typically signifies quicker collections, which can improve cash flow and working capital management. It indicates that the company is efficient in converting credit sales into cash.
Overall, monitoring DSO is crucial for evaluating a company's receivables management efficiency and liquidity. Henry Schein Inc should continue to focus on maintaining an optimal DSO level to ensure timely collections and healthy cash flow.
Peer comparison
Dec 31, 2024