Henry Schein Inc (HSIC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 615,000 | 747,000 | 852,000 | 535,000 | 718,261 |
| Total assets | US$ in thousands | 10,573,000 | 8,607,000 | 8,481,000 | 7,773,000 | 7,151,100 |
| Operating ROA | 5.82% | 8.68% | 10.05% | 6.88% | 10.04% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $615,000K ÷ $10,573,000K
= 5.82%
Operating return on assets (Operating ROA) is a crucial financial metric that measures a company's efficiency in generating operating income from its total assets. Henry Schein Inc's operating ROA has shown fluctuating trends over the past five years.
In 2023, Henry Schein Inc's operating ROA decreased to 5.82% from 8.68% in 2022. This decline suggests a lower ability to generate operating income relative to its total assets compared to the prior year.
The company's performance in 2023 is notably lower than its peaks in 2021 and 2019 when the operating ROA stood at 10.05% and 10.04%, respectively. This indicates that Henry Schein Inc's operating efficiency in converting assets into operating income was stronger in those years.
However, the company's operating ROA in 2023 was higher than in 2020 when it was 6.88%. This improvement suggests that Henry Schein Inc performed better in utilizing its assets to generate operating income in 2023 compared to the challenging economic conditions experienced in 2020.
Overall, the fluctuating trend in Henry Schein Inc's operating ROA highlights the importance of closely monitoring the company's operating efficiency in relation to its asset base to assess its financial performance and sustainability.
Peer comparison
Dec 31, 2023