Henry Schein Inc (HSIC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.69% | 31.51% | 30.40% | 29.67% | 27.94% |
| Operating profit margin | 4.90% | 5.02% | 5.93% | 6.88% | 5.31% |
| Pretax margin | 4.09% | 4.37% | 5.62% | 6.69% | 4.95% |
| Net profit margin | 3.08% | 3.40% | 4.27% | 5.10% | 4.01% |
Henry Schein Inc has shown consistent improvement in its profitability margins over the years. The gross profit margin has steadily increased from 27.94% in December 31, 2020, to 31.69% in December 31, 2024. This indicates the company's ability to effectively manage its cost of goods sold.
However, the operating profit margin, which reflects the company's efficiency in managing operating expenses, has fluctuated during this period. It increased from 5.31% in December 31, 2020, to 6.88% in December 31, 2021, but then decreased to 4.90% by December 31, 2024. This suggests that Henry Schein Inc may need to focus on controlling its operating costs to improve profitability.
Similarly, the pretax margin, which measures profitability before accounting for taxes, also shows some variability, with a peak of 6.69% in December 31, 2021, followed by a decline to 4.09% by December 31, 2024. This implies that the company's pre-tax profitability has been somewhat volatile.
The net profit margin, representing the company's bottom line profitability after all expenses are accounted for, has shown a general decreasing trend from 4.01% in December 31, 2020, to 3.08% in December 31, 2024. This decline may raise concerns about the company's ability to maintain profitability levels in the long term.
Overall, while Henry Schein Inc has made improvements in its gross profit margin, there are areas such as operating expenses and net profitability that may require closer attention to ensure sustained financial health and growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.08% | 5.82% | 8.68% | 10.05% | 6.88% |
| Return on assets (ROA) | 3.82% | 3.93% | 6.25% | 7.44% | 5.20% |
| Return on total capital | 19.13% | 17.05% | 21.82% | 25.02% | 16.13% |
| Return on equity (ROE) | 11.49% | 11.38% | 15.61% | 18.42% | 12.07% |
Based on the provided data, Henry Schein Inc's profitability ratios have shown some fluctuations over the years:
1. Operating return on assets (Operating ROA) has varied from 6.88% in 2020 to a peak of 10.05% in 2021, followed by a slight decline in subsequent years, ending at 6.08% in 2024.
2. Return on assets (ROA) has followed a similar trend, starting at 5.20% in 2020, peaking at 7.44% in 2021 before declining to 3.82% in 2024.
3. Return on total capital has demonstrated a more fluctuating pattern, with values ranging from 16.13% in 2020 to a high of 25.02% in 2021, then moderating to 19.13% in 2024.
4. Return on equity (ROE) has shown a consistent decrease from 12.07% in 2020 to 11.49% in 2024, with a peak of 18.42% in 2021.
These ratios indicate that Henry Schein Inc's profitability performance has been somewhat volatile over the years, with varying levels of returns generated from assets, capital, and equity. Further analysis would be required to understand the drivers behind these fluctuations and assess the company's overall financial health.