Henry Schein Inc (HSIC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,052,000 | 11,734,000 | 11,954,000 | 11,691,300 | 9,707,250 |
| Inventory | US$ in thousands | 1,810,000 | 1,815,000 | 1,963,000 | 1,861,000 | 1,512,500 |
| Inventory turnover | 6.66 | 6.47 | 6.09 | 6.28 | 6.42 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $12,052,000K ÷ $1,810,000K
= 6.66
Henry Schein Inc's inventory turnover has shown a relatively stable trend over the five years from December 31, 2020, to December 31, 2024. The inventory turnover ratio measures how efficiently the company is managing its inventory by calculating how many times during a period inventory is sold and replaced.
With an inventory turnover of 6.42 in December 31, 2020, the company effectively rotated its inventory approximately 6.42 times during that year. The slight decrease to 6.28 in December 31, 2021, suggests a slight dip in inventory turnover efficiency, possibly indicating slower sales or higher average inventory levels.
The trend continued with a further decrease to 6.09 in December 31, 2022, signaling a potential area for improvement in managing inventory levels more effectively. However, the ratio improved in December 31, 2023, reaching 6.47, indicating a positive change in inventory management practices.
By the end of December 31, 2024, Henry Schein Inc achieved an inventory turnover of 6.66, reflecting an improvement in efficiency in managing its inventory. Overall, the company has maintained a moderately healthy inventory turnover ratio over the period, indicating efficient management of inventory levels and a good balance between sales and keeping inventory stocked.
Peer comparison
Dec 31, 2024