Henry Schein Inc (HSIC)
Payables 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 |
| Payables | US$ in thousands | 1,020,000 | 1,004,000 | 1,054,000 | 1,005,660 | 880,266 |
| Payables turnover | 11.50 | 11.91 | 11.09 | 9.65 | 10.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,734,000K ÷ $1,020,000K
= 11.50
Payables turnover is a financial ratio that measures how efficiently a company manages its accounts payable by indicating how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
Looking at the payables turnover data of Henry Schein Inc from 2019 to 2023, we can see fluctuations in the ratio over the years. The payables turnover ratio was 10.67 in 2019, increased to 11.09 in 2021, reached a peak of 11.91 in 2022, and slightly decreased to 11.50 in 2023.
The increase in payables turnover from 2019 to 2022 indicates that Henry Schein Inc was managing its accounts payable more efficiently during these years, as it was paying off its suppliers more frequently. However, the slight decrease in 2023 may suggest a small slowdown in the efficiency of managing payables compared to the previous year.
Overall, Henry Schein Inc has maintained a relatively high payables turnover ratio, indicating effective management of accounts payable and a strong relationship with its suppliers over the years covered in the data.
Peer comparison
Dec 31, 2023