Henry Schein Inc (HSIC)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.42 1.42 1.55 1.75 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
Quick ratio 0.57 0.61 0.67 0.77 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
Cash ratio 0.04 0.04 0.05 0.07 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

Henry Schein Inc's liquidity ratios have shown some fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating a healthy liquidity position. The current ratio has ranged from 1.42 to 1.97, with the highest value recorded in September 30, 2023.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown variability. While the quick ratio has dipped as low as 0.06 in March 31, 2023, it has mostly been above 0.6, suggesting the company can meet its short-term obligations without relying heavily on inventory.

The cash ratio, which provides an even stricter view by considering only cash and cash equivalents to cover current liabilities, has generally remained low for Henry Schein Inc. The cash ratio has fluctuated between 0.04 and 0.34, with the company having limited cash reserves relative to its short-term obligations.

In summary, Henry Schein Inc has maintained a reasonable current ratio and quick ratio over the years, indicating a comfortable liquidity position. However, the company's cash ratio suggests a relatively low level of cash reserves compared to its short-term liabilities, which may warrant further monitoring to ensure the availability of funds for unexpected needs.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 68.58 70.96 70.13 73.41 80.23 81.70 85.45 44.71 81.87 70.22 68.59 70.99 67.99 77.82 77.00 82.54 79.54 77.78 79.93 70.81

The cash conversion cycle of Henry Schein Inc has shown fluctuations over the periods provided. The cash conversion cycle represents the time it takes for a company to convert its resources into cash flows. A shorter cash conversion cycle is generally indicative of efficient working capital management.

Analyzing the data, we can observe that the cash conversion cycle ranged from a low of 44.71 days on March 31, 2023, to a high of 85.45 days on June 30, 2023. Generally, a decreasing trend in the cash conversion cycle is considered favorable as it indicates that the company is managing its working capital more efficiently.

Key points to note are:
- The company experienced a significant improvement in its cash conversion cycle in the first quarter of 2023, where it reached its lowest point of 44.71 days, suggesting effective management of cash flow processes.
- However, this trend was followed by a substantial spike in the cash conversion cycle to 85.45 days by June 30, 2023, indicating potential issues in managing working capital efficiently during that period.
- From September 30, 2023, to December 31, 2024, the cash conversion cycle remained relatively stable, hovering around the 70 to 80-day range.

Overall, a lower cash conversion cycle indicates that the company is efficiently managing its cash, inventory, and receivables. Stakeholders and investors may find this metric crucial in evaluating the company's liquidity and operational efficiency.