Henry Schein Inc (HSIC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,673,000 | 12,252,000 | 12,603,000 | 12,383,200 | 10,079,900 |
| Property, plant and equipment | US$ in thousands | 1,194,000 | 1,161,000 | 946,000 | 366,456 | 342,004 |
| Fixed asset turnover | 10.61 | 10.55 | 13.32 | 33.79 | 29.47 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,673,000K ÷ $1,194,000K
= 10.61
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of Henry Schein Inc, the trend in fixed asset turnover over the years is as follows:
- In December 31, 2020, the fixed asset turnover ratio was 29.47, indicating that for every dollar invested in fixed assets, the company generated $29.47 in revenue.
- By December 31, 2021, the ratio improved significantly to 33.79, suggesting that the company became more efficient in utilizing its fixed assets to generate revenue.
- However, there was a notable decline in efficiency by December 31, 2022, with the fixed asset turnover ratio dropping to 13.32. This could indicate either a decrease in revenue generation or an increase in fixed asset investments without a proportional increase in revenue.
- The trend continued in December 31, 2023, with the fixed asset turnover ratio further decreasing to 10.55, signaling a potential issue with asset utilization.
- By December 31, 2024, the ratio remained relatively stable at 10.61, continuing to reflect challenges in optimizing fixed asset performance.
Overall, the fluctuating trend in Henry Schein Inc's fixed asset turnover suggests varying levels of efficiency in utilizing fixed assets to generate revenue over the years, potentially indicating the need for further analysis to identify factors contributing to these fluctuations and implement strategies to improve asset utilization efficiency.
Peer comparison
Dec 31, 2024