Henry Schein Inc (HSIC)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,266,000 | 12,632,000 | 12,551,000 | 12,491,000 | 12,603,000 | 12,573,770 | 12,696,850 | 12,636,700 | 12,383,180 | 12,225,710 | 11,875,670 | 10,588,730 | 10,091,310 | 9,779,720 | 9,447,070 | 10,208,200 | 10,131,110 | 10,650,600 | 11,433,890 | 12,325,530 |
| Total current assets | US$ in thousands | 4,488,000 | 4,113,000 | 3,911,000 | 3,952,000 | 3,988,000 | 3,957,000 | 3,789,000 | 3,830,000 | 3,844,000 | 3,912,360 | 3,742,250 | 3,570,620 | 3,791,420 | 3,869,250 | 3,409,210 | 3,619,100 | 3,226,500 | 3,115,740 | 3,108,710 | 3,109,110 |
| Total current liabilities | US$ in thousands | 2,683,000 | 2,093,000 | 2,276,000 | 2,172,000 | 2,224,000 | 2,146,000 | 2,076,000 | 2,144,000 | 2,307,000 | 2,301,400 | 2,093,640 | 2,122,770 | 2,283,100 | 2,603,810 | 2,307,240 | 2,205,830 | 2,038,370 | 1,908,690 | 1,825,280 | 1,878,780 |
| Working capital turnover | 6.80 | 6.25 | 7.68 | 7.02 | 7.14 | 6.94 | 7.41 | 7.50 | 8.06 | 7.59 | 7.20 | 7.31 | 6.69 | 7.73 | 8.57 | 7.22 | 8.53 | 8.82 | 8.91 | 10.02 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,266,000K ÷ ($4,488,000K – $2,683,000K)
= 6.80
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Henry Schein Inc, the working capital turnover has varied over the periods in question, ranging from a low of 6.25 to a high of 10.02.
The general trend indicates that the company has been able to effectively manage its working capital to support its sales activities. A higher ratio suggests that Henry Schein is efficient in its use of working capital to generate sales, with a lower ratio indicating a potential inefficiency.
It is worth noting that the working capital turnover ratio can be influenced by various factors such as inventory management, accounts receivable and payable practices, and overall operational efficiency. Therefore, it is essential for Henry Schein Inc to continue monitoring and managing its working capital effectively to sustain its sales growth and profitability.
Peer comparison
Dec 31, 2023