Henry Schein Inc (HSIC)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.54 | 82.77 | 84.34 | 88.76 | 82.09 | 55.90 | 55.53 | 57.24 | 58.10 | 77.29 | 75.98 | 84.25 | 83.58 | 80.94 | 78.29 | 67.80 | 73.62 | 51.01 | 51.70 | 50.13 |
| Days of sales outstanding (DSO) | days | 55.44 | 45.45 | 42.69 | — | 41.76 | 43.75 | 40.50 | 41.71 | 42.79 | 46.33 | 41.70 | 45.42 | 51.53 | 52.54 | 42.55 | 42.86 | 44.90 | 43.83 | 38.43 | 35.33 |
| Number of days of payables | days | 34.02 | 43.03 | 37.39 | 39.57 | 41.99 | 29.43 | 27.44 | 27.96 | 32.91 | 45.80 | 40.68 | 47.12 | 55.58 | 55.69 | 40.91 | 39.85 | 45.36 | 32.13 | 28.19 | 25.43 |
| Cash conversion cycle | days | 81.95 | 85.19 | 89.64 | 49.19 | 81.87 | 70.22 | 68.59 | 70.99 | 67.99 | 77.82 | 77.00 | 82.54 | 79.54 | 77.78 | 79.93 | 70.81 | 73.16 | 62.71 | 61.94 | 60.03 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.54 + 55.44 – 34.02
= 81.95
The cash conversion cycle of Henry Schein Inc has exhibited fluctuations over the past few quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash receipts from sales.
In the most recent quarter ending December 31, 2023, Henry Schein Inc's cash conversion cycle was 81.95 days, indicating a slight improvement from the previous quarter. However, compared to the same quarter in the previous year, the cycle was longer, suggesting potential challenges in managing inventory turnover and collections.
Overall, the company's cash conversion cycle has ranged between 49.19 days and 89.64 days over the past two years, with varying levels of efficiency in managing working capital. It is important for Henry Schein Inc to focus on optimizing inventory management, accounts receivable collection, and accounts payable to reduce the cycle length and enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2023