Henry Schein Inc (HSIC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 171,000 | 117,000 | 118,000 | 421,000 | 106,097 |
| Short-term investments | US$ in thousands | — | — | — | 185 | — |
| Total current liabilities | US$ in thousands | 2,683,000 | 2,224,000 | 2,307,000 | 2,283,100 | 2,038,370 |
| Cash ratio | 0.06 | 0.05 | 0.05 | 0.18 | 0.05 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($171,000K
+ $—K)
÷ $2,683,000K
= 0.06
The cash ratio of Henry Schein Inc has exhibited variations over the past five years. This ratio represents the company's ability to cover its short-term liabilities with cash and cash equivalents. In 2020, the cash ratio was at its highest point at 0.18, indicating a strong ability to meet short-term obligations with cash on hand. However, this ratio decreased significantly in 2021 and remained relatively stable in 2022 and 2023, hovering around 0.05.
A cash ratio of 0.05 implies that for every dollar of current liabilities, Henry Schein Inc has $0.05 in cash and cash equivalents available. While the company's cash ratio has fluctuated, it suggests that Henry Schein Inc may have a limited ability to cover its short-term obligations solely with cash reserves in recent years. It is essential for investors and stakeholders to monitor the trend of the cash ratio to assess the company's liquidity position and its ability to weather potential financial challenges in the future.
Peer comparison
Dec 31, 2023