Henry Schein Inc (HSIC)
Working capital 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 current assets | US$ in thousands | 4,488,000 | 3,988,000 | 3,844,000 | 3,791,420 | 3,226,500 |
| Total current liabilities | US$ in thousands | 2,683,000 | 2,224,000 | 2,307,000 | 2,283,100 | 2,038,370 |
| Working capital turnover | 6.79 | 7.14 | 8.06 | 6.68 | 8.57 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,252,000K ÷ ($4,488,000K – $2,683,000K)
= 6.79
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital.
Looking at the data provided, Henry Schein Inc's working capital turnover has fluctuated over the years. In 2023, the ratio was 6.79, which was slightly lower than the previous year's ratio of 7.14. This suggests a slight decrease in the efficiency of utilizing working capital to generate sales.
Comparing 2023 to 2021 and 2019, where the ratios were 8.06 and 8.57 respectively, we see a downward trend in working capital turnover efficiency. However, in 2020, the ratio was 6.68, indicating a temporary dip in efficiency.
Overall, despite some fluctuations, Henry Schein Inc has generally maintained a healthy working capital turnover ratio, indicating efficient usage of working capital to support revenue generation. Continued monitoring of this ratio is important to ensure optimal management of working capital resources.
Peer comparison
Dec 31, 2023