Henry Schein Inc (HSIC)
Payables 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 |
| Payables | US$ in thousands | 962,000 | 1,020,000 | 1,004,000 | 1,054,000 | 1,005,660 |
| Payables turnover | 12.53 | 11.50 | 11.91 | 11.09 | 9.65 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,052,000K ÷ $962,000K
= 12.53
The payables turnover ratio for Henry Schein Inc has shown a positive trend over the past five years. It increased from 9.65 in December 2020 to 11.09 in December 2021, further increasing to 11.91 in December 2022. Although there was a slight decrease to 11.50 in December 2023, the ratio bounced back and reached 12.53 in December 2024.
This improvement in the payables turnover ratio indicates that the company is managing its accounts payable efficiently. A higher payables turnover ratio signifies that Henry Schein Inc is paying off its suppliers more frequently within a shorter period, which could indicate good working capital management and strong supplier relationships.
Overall, the increasing trend in the payables turnover ratio reflects positively on Henry Schein Inc's financial health and operational efficiency in managing its accounts payable.
Peer comparison
Dec 31, 2024