Henry Schein Inc (HSIC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,734,000 | 11,954,000 | 11,691,300 | 9,707,250 | 9,389,300 |
| Inventory | US$ in thousands | 1,815,000 | 1,963,000 | 1,861,000 | 1,512,500 | 1,428,800 |
| Inventory turnover | 6.47 | 6.09 | 6.28 | 6.42 | 6.57 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,734,000K ÷ $1,815,000K
= 6.47
Henry Schein Inc's inventory turnover has exhibited a consistent trend over the past five years. The ratio has ranged between 6.09 and 6.57, indicating the company's ability to efficiently manage its inventory levels and convert them into sales. A higher inventory turnover generally signifies that the company is effectively selling its products and minimizing the amount of inventory held, which can reduce holding costs and risks associated with obsolete inventory.
The slight fluctuations in the inventory turnover ratio suggest that Henry Schein Inc has been able to maintain a stable level of efficiency in managing its inventory over the years. It is crucial for the company to strike a balance between having enough inventory to fulfill customer demand and avoiding excess inventory that could tie up capital. By consistently achieving inventory turnover ratios within this range, Henry Schein Inc appears to have a solid grasp on its inventory management practices.
Peer comparison
Dec 31, 2023