Henry Schein Inc (HSIC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,252,000 | 12,603,000 | 12,383,200 | 10,079,900 | 10,185,200 |
| Property, plant and equipment | US$ in thousands | 1,161,000 | 946,000 | 366,456 | 342,004 | 329,645 |
| Fixed asset turnover | 10.55 | 13.32 | 33.79 | 29.47 | 30.90 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,252,000K ÷ $1,161,000K
= 10.55
Fixed asset turnover measures how efficiently a company generates sales revenue from its investment in fixed assets. It indicates the ability of the company to utilize its fixed assets to generate sales.
Analyzing the fixed asset turnover for Henry Schein Inc over the past five years, we observe a decreasing trend from 2019 to 2023. The ratio has decreased from 30.90 in 2019 to 10.55 in 2023. This decline suggests a decrease in the company's ability to generate sales from its fixed assets efficiently over the years.
A high fixed asset turnover ratio is generally favorable, indicating that the company is effectively utilizing its fixed assets to generate sales. Conversely, a low ratio may suggest potential inefficiencies in asset utilization.
Further investigation into the causes of the declining fixed asset turnover would be beneficial to identify any operational or strategic issues impacting Henry Schein Inc's ability to optimize the productivity of its fixed assets.
Peer comparison
Dec 31, 2023