Henry Schein Inc (HSIC)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 6.66 6.85 7.21 7.04 6.47 4.84 4.76 4.52 4.45 6.53 6.57 6.38 6.28 4.72 4.80 4.33 4.37 4.51 4.66 5.38
Receivables turnover 8.51 7.47 7.94 7.51 6.58 8.02 8.54 — 8.74 8.34 9.01 8.75 8.53 7.88 8.75 8.04 7.08 6.95 8.58 8.52
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
Working capital turnover 10.69 10.19 8.89 7.08 6.79 6.25 7.67 7.01 7.14 6.94 7.41 7.50 8.06 7.59 7.20 7.31 6.69 7.73 8.57 7.22

Henry Schein Inc's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory turnover:
- The trend in inventory turnover indicates a fluctuating pattern over the years, with a general increase from 2020 to 2022, followed by a slight decrease by the end of 2024. This may suggest improvements in managing inventory levels, turning goods into sales faster.

2. Receivables turnover:
- Receivables turnover has shown some variability year over year but has generally remained relatively stable. The average number of times accounts receivable is collected during a period remained within a consistent range with occasional fluctuations.

3. Payables turnover:
- The payables turnover ratio has depicted a consistent increase over the years, indicating the company is taking longer to pay its suppliers. This may suggest improved bargaining power or stretched payables management.

4. Working capital turnover:
- The working capital turnover has displayed a varying trend, with peaks in mid-2024. This ratio shows how effectively the company is utilizing its working capital to generate sales, and the fluctuations might indicate changes in operational efficiency or working capital management strategies.

Overall, analyzing these activity ratios provides valuable insights into Henry Schein Inc's operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital to drive business performance.

Average number of days

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
Days of inventory on hand (DOH) days 54.83 53.32 50.61 51.84 56.46 75.39 76.73 80.67 82.09 55.90 55.53 57.24 58.10 77.29 75.98 84.25 83.58 80.94 78.29 67.80
Days of sales outstanding (DSO) days 42.89 48.83 46.00 48.60 55.50 45.50 42.74 — 41.76 43.75 40.50 41.71 42.79 46.33 41.70 45.42 51.53 52.54 42.55 42.86
Number of days of payables days 29.14 31.19 26.48 27.03 31.73 39.20 34.01 35.96 41.99 29.43 27.44 27.96 32.91 45.80 40.68 47.12 55.58 55.69 40.91 39.85

Based on the provided data, Henry Schein Inc's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- Henry Schein's DOH has fluctuated over the years, ranging from a low of 50.61 days to a high of 84.25 days.
- A decreasing trend in DOH from December 31, 2024, to March 31, 2024, suggests improved inventory management efficiency.
- However, the spike in DOH on December 31, 2022, and March 31, 2023, followed by a decline, may indicate inventory management challenges or fluctuations in demand.

2. Days of Sales Outstanding (DSO):
- The DSO metric reflects the average number of days it takes for Henry Schein to collect its accounts receivable.
- The DSO values have shown variations but generally remained within a manageable range.
- A decreasing trend in DSO from December 31, 2024, to June 30, 2024, indicates potential improvement in receivables collection efficiency.

3. Number of Days of Payables:
- The number of days of payables shows the average number of days it takes for Henry Schein to pay its suppliers.
- There has been a decreasing trend in the number of days of payables, indicating that the company is paying its suppliers more quickly over time.
- The reduction in the number of days of payables may suggest a strategic approach to managing trade credit relationships or negotiating better payment terms.

In summary, Henry Schein Inc has shown fluctuations in its activity ratios over the years, with some improvements in inventory and receivables management efficiency. The decrease in the number of days of payables could reflect a proactive approach to managing supplier relationships. Monitoring these activity ratios can provide valuable insights into the company's operational performance and efficiency in managing working capital.

Long-term

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
Fixed asset turnover 10.56 22.98 23.88 24.70 10.55 26.62 28.56 31.51 13.32 35.52 35.67 35.30 33.79 34.94 33.74 30.47 29.51 29.20 28.12 31.12
Total asset turnover 1.23 1.17 1.21 1.22 1.16 1.29 1.37 1.46 1.46 1.47 1.53 1.50 1.46 1.45 1.46 1.36 1.30 1.25 1.29 1.36

The Fixed Asset Turnover ratio for Henry Schein Inc has shown fluctuations over the years, ranging from a high of 35.67 in June 2022 to a low of 10.55 in December 2023. This ratio measures how efficiently the company is using its fixed assets to generate sales revenue. An increasing trend in the fixed asset turnover ratio indicates improved efficiency in utilizing fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio, which indicates how effectively the company is using all its assets to generate revenue, fluctuated over the same period. It ranged from a high of 1.53 in June 2022 to a low of 1.16 in December 2023. Generally, a higher total asset turnover ratio implies more efficient utilization of assets to generate sales.

It is important to note that a thorough analysis of these ratios should consider industry benchmarks and trends over time to assess Henry Schein Inc's performance in utilizing its assets to drive sales growth.