Henry Schein Inc (HSIC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.51% | 30.40% | 29.67% | 27.94% | 30.35% |
| Operating profit margin | 5.02% | 5.93% | 6.88% | 5.31% | 7.05% |
| Pretax margin | 4.37% | 5.62% | 6.69% | 4.95% | 8.39% |
| Net profit margin | 3.40% | 4.27% | 5.10% | 4.01% | 6.82% |
Henry Schein Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has been gradually increasing, reaching 31.51% in 2023, indicating the company's ability to generate profit from its core operations.
However, the operating profit margin has shown some variability, with a decline in 2023 to 5.02% from 6.88% in 2021. This suggests that the company's operating expenses may have increased relative to its revenue.
Similarly, the pretax margin has also trended downwards in 2023 to 4.37%, which reflects the profitability of the company before accounting for taxes. This decline may be attributed to various factors impacting the company's bottom line.
The net profit margin has also decreased to 3.40% in 2023, indicating the portion of revenue that translates into profit after all expenses have been deducted. This downward trend in profitability ratios raises concerns about the company's ability to maintain and grow its bottom line.
Overall, while the gross profit margin improvement is a positive sign, the declining trend in operating, pretax, and net profit margins warrants further investigation into the factors influencing Henry Schein Inc's profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.82% | 8.68% | 10.05% | 6.88% | 10.04% |
| Return on assets (ROA) | 3.93% | 6.25% | 7.44% | 5.20% | 9.72% |
| Return on total capital | 17.05% | 21.82% | 25.02% | 16.13% | 30.19% |
| Return on equity (ROE) | 11.38% | 15.61% | 18.42% | 12.07% | 23.17% |
Henry Schein Inc's profitability ratios show fluctuating levels over the past five years.
- Operating return on assets (Operating ROA) has decreased steadily from 10.05% in 2021 to 5.82% in 2023, indicating a decline in the company's ability to generate profits from its assets through its core operations.
- Return on assets (ROA) has also shown a decreasing trend from 7.44% in 2021 to 3.93% in 2023, suggesting a reduction in the company's overall profitability relative to its total assets.
- Return on total capital has fluctuated, with a peak of 30.19% in 2019, followed by a decline to 17.05% in 2023. This ratio indicates the company's ability to generate returns for all providers of capital, including both shareholders and debtholders.
- Return on equity (ROE) has shown a similar pattern, with a high of 23.17% in 2019 and a decrease to 11.38% in 2023. ROE reflects the company's ability to generate profits from shareholders' equity.
Overall, the decreasing trend in profitability ratios suggests potential challenges for Henry Schein Inc in maintaining and improving its profitability in the coming years. Further analysis of the company's financial performance and operational efficiency may be needed to identify the root causes of these trends and develop strategies for improvement.