Henry Schein Inc (HSIC)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.67 | 1.97 | 1.72 | 1.82 | 1.79 | 1.84 | 1.83 | 1.79 | 1.67 | 1.70 | 1.79 | 1.68 | 1.66 | 1.49 | 1.48 | 1.64 | 1.58 | 1.63 | 1.70 | 1.65 |
| Quick ratio | 0.76 | 0.83 | 0.71 | 0.06 | 0.70 | 0.76 | 0.73 | 0.73 | 0.68 | 0.90 | 0.92 | 0.69 | 0.81 | 0.88 | 0.76 | 0.82 | 0.66 | 0.71 | 0.71 | 0.68 |
| Cash ratio | 0.06 | 0.08 | 0.06 | 0.06 | 0.05 | 0.06 | 0.05 | 0.06 | 0.05 | 0.22 | 0.27 | 0.07 | 0.18 | 0.34 | 0.29 | 0.28 | 0.05 | 0.04 | 0.05 | 0.05 |
Henry Schein Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has shown fluctuations over different periods but generally remains above 1, suggesting that the company has sufficient current assets to cover its current liabilities. The quick ratio, which excludes inventory from current assets, has also varied but generally indicates a lower level of liquidity compared to the current ratio.
Of particular note is the sharp decline in the quick ratio in March 2023, which dropped to an extremely low level of 0.06, indicating potential liquidity challenges during that period. The quick ratio has generally improved in subsequent periods but remains relatively low compared to historical levels.
The cash ratio, which is the most conservative measure of liquidity, has also fluctuated significantly, with some periods showing very low levels of cash to cover current liabilities. However, there are instances where the cash ratio has improved, such as in September 2021 and June 2020, indicating better liquidity positions during those periods.
Overall, while Henry Schein Inc has maintained a current ratio above 1, signaling a reasonable liquidity position, the fluctuations in the quick and cash ratios highlight potential liquidity risks that the company may need to manage to ensure ongoing financial stability and ability to meet short-term obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Henry Schein Inc has shown fluctuation over the past few quarters. The trend indicates that the company takes an average of around 70 to 80 days to convert its investments in inventory into cash received from sales.
In the most recent quarter, ending December 31, 2023, the cash conversion cycle was 81.95 days, showing a slight increase compared to the previous quarter's 85.19 days. This suggests a slightly longer period to convert inventory into sales and then into cash receipts.
The longest cash conversion cycle observed in the data provided was in June 2023, at 89.64 days, while the shortest cycle was in March 2020, at 49.19 days.
Overall, the company's cash conversion cycle has been relatively stable, with some fluctuations. It is essential for Henry Schein Inc to effectively manage its inventory levels, streamline sales processes, and optimize accounts receivable collection to improve its cash conversion cycle and enhance its liquidity position.