Henry Schein Inc (HSIC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,252,000 | 12,603,000 | 12,383,200 | 10,079,900 | 10,185,200 |
| Total assets | US$ in thousands | 10,573,000 | 8,607,000 | 8,481,000 | 7,773,000 | 7,151,100 |
| Total asset turnover | 1.16 | 1.46 | 1.46 | 1.30 | 1.42 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,252,000K ÷ $10,573,000K
= 1.16
Henry Schein Inc's total asset turnover has shown some fluctuations over the past five years, ranging from 1.16 in 2023 to 1.46 in 2022 and 2021. Total asset turnover measures how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets.
The significant drop in total asset turnover from 1.46 in 2021 to 1.16 in 2023 suggests that the company might be less efficient in utilizing its assets to generate sales in the most recent year. This could be due to various factors such as changes in the company's business operations, a decrease in sales relative to its assets, or an increase in average total assets without a corresponding increase in revenue.
Overall, Henry Schein Inc should investigate the reasons behind the decrease in total asset turnover and take appropriate actions to improve asset utilization efficiency in order to enhance its revenue generation capabilities.
Peer comparison
Dec 31, 2023