Henry Schein Inc (HSIC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 122,000 | 171,000 | 117,000 | 118,000 | 421,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 185 |
| Receivables | US$ in thousands | 1,482,000 | 1,863,000 | 1,442,000 | 1,451,830 | 1,424,790 |
| Total current liabilities | US$ in thousands | 2,803,000 | 2,683,000 | 2,224,000 | 2,307,000 | 2,283,100 |
| Quick ratio | 0.57 | 0.76 | 0.70 | 0.68 | 0.81 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($122,000K
+ $—K
+ $1,482,000K)
÷ $2,803,000K
= 0.57
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at the data provided, Henry Schein Inc's quick ratio has fluctuated over the past five years.
As of December 31, 2020, the quick ratio stood at 0.81, indicating that the company had $0.81 in liquid assets for every $1 of current liabilities. However, this ratio decreased to 0.68 by December 31, 2021, suggesting a potential liquidity challenge in meeting short-term obligations.
Subsequently, the quick ratio improved slightly to 0.70 by December 31, 2022, but then increased further to 0.76 by December 31, 2023. This indicates a positive trend in the company's liquidity position over these two years.
However, the ratio deteriorated significantly to 0.57 by December 31, 2024, falling below the industry standard of 1. This may raise concerns about Henry Schein Inc's ability to cover its short-term liabilities using its quick assets alone.
Overall, while there have been fluctuations in Henry Schein Inc's quick ratio over the past five years, investors and stakeholders should closely monitor the company's liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024