Henry Schein Inc (HSIC)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,050,000 | 12,007,000 | 11,950,000 | 11,871,000 | 11,734,000 | 8,874,000 | 8,767,000 | 8,678,000 | 8,728,000 | 11,870,250 | 11,983,320 | 11,930,710 | 11,691,350 | 8,425,480 | 8,110,320 | 7,045,040 | 6,604,840 | 6,599,401 | 6,558,061 | 7,151,491 |
| Payables | US$ in thousands | 962,000 | 1,026,000 | 867,000 | 879,000 | 1,020,000 | 953,000 | 817,000 | 855,000 | 1,004,000 | 957,000 | 901,000 | 914,000 | 1,054,000 | 1,057,130 | 903,859 | 909,575 | 1,005,660 | 1,006,960 | 734,957 | 780,853 |
| Payables turnover | 12.53 | 11.70 | 13.78 | 13.51 | 11.50 | 9.31 | 10.73 | 10.15 | 8.69 | 12.40 | 13.30 | 13.05 | 11.09 | 7.97 | 8.97 | 7.75 | 6.57 | 6.55 | 8.92 | 9.16 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,050,000K ÷ $962,000K
= 12.53
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating 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, which can be seen as positive because it shows good liquidity and efficient management of trade credit.
Analyzing the payables turnover ratio of Henry Schein Inc over the provided periods, we observe fluctuations in the ratio. The ratio ranged from a low of 6.55 on September 30, 2020, to a high of 13.78 on June 30, 2024. The data suggests that the company's efficiency in paying its suppliers varied over the years.
The trend in the payables turnover ratio is not consistent, showing volatility in the management of accounts payable. An increasing trend in the ratio could indicate improved liquidity or negotiation power with suppliers. On the other hand, a decreasing trend might suggest cash flow issues or a deliberate strategy to hold onto cash.
It is important to compare the payables turnover ratio with industry benchmarks and historical data for Henry Schein Inc to get a more meaningful interpretation of the company's performance in managing its accounts payable effectively. Further analysis alongside other financial ratios and information about the company's operations would provide a more comprehensive understanding of its financial health and efficiency in managing its working capital.
Peer comparison
Dec 31, 2024