Henry Schein Inc (HSIC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 390,000 | 416,000 | 538,000 | 631,000 | 404,000 |
| Total stockholders’ equity | US$ in thousands | 3,393,000 | 3,655,000 | 3,446,000 | 3,425,000 | 3,348,170 |
| ROE | 11.49% | 11.38% | 15.61% | 18.42% | 12.07% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $390,000K ÷ $3,393,000K
= 11.49%
Henry Schein Inc's return on equity (ROE) has shown some fluctuation over the past five years. The ROE was at 12.07% on December 31, 2020, and increased to 18.42% by December 31, 2021, indicating an improvement in the company's profitability in the following year. However, in the subsequent years, the ROE has seen a slight decline, with figures of 15.61% on December 31, 2022, 11.38% on December 31, 2023, and 11.49% on December 31, 2024.
The increase in ROE from 2020 to 2021 suggests that Henry Schein Inc was able to generate more profit relative to its shareholders' equity in that period. However, the decreasing trend in ROE from 2021 onwards could be a cause for concern as it indicates a potential decline in the company's efficiency in utilizing shareholders' equity to generate profits.
It is essential for investors and stakeholders to closely monitor the company's financial performance and assess the reasons behind the fluctuations in ROE to determine the sustainability and quality of Henry Schein Inc's earnings.
Peer comparison
Dec 31, 2024