Henry Schein Inc (HSIC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 171,000 | 117,000 | 118,000 | 421,000 | 106,097 |
| Short-term investments | US$ in thousands | — | — | — | 185 | — |
| Receivables | US$ in thousands | 1,863,000 | 1,442,000 | 1,451,830 | 1,424,790 | 1,246,250 |
| Total current liabilities | US$ in thousands | 2,683,000 | 2,224,000 | 2,307,000 | 2,283,100 | 2,038,370 |
| Quick ratio | 0.76 | 0.70 | 0.68 | 0.81 | 0.66 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($171,000K
+ $—K
+ $1,863,000K)
÷ $2,683,000K
= 0.76
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio is generally considered favorable as it indicates the company has an adequate level of liquid assets to cover its short-term liabilities.
Analyzing Henry Schein Inc's quick ratio over the past five years, we observe fluctuations in the ratio:
- In 2019, the quick ratio was 0.66, indicating that the company had $0.66 of liquid assets available to cover each dollar of current liabilities. This suggests a relatively lower liquidity position at the time.
- In 2020, there was an improvement as the quick ratio increased to 0.81, indicating a better ability to meet short-term obligations with liquid assets.
- However, in 2021 and 2022, the quick ratio decreased to 0.68 and 0.70, respectively, suggesting a decline in liquidity compared to the previous year.
- By the end of 2023, the quick ratio further decreased to 0.76, still below the 2020 level. This indicates that Henry Schein Inc may have slightly less liquidity available to cover its short-term liabilities compared to 2020.
Overall, while the trend in Henry Schein Inc's quick ratio has shown some fluctuations over the past five years, the ratio has generally remained below 1, indicating that the company may have had a tighter liquidity position, potentially needing to rely more on non-liquid assets or other forms of financing to meet short-term obligations.
Peer comparison
Dec 31, 2023