Henry Schein Inc (HSIC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 623,000 | 752,000 | 857,000 | 540,000 | 905,041 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,655,000 | 3,446,000 | 3,425,000 | 3,348,170 | 2,998,040 |
| Return on total capital | 17.05% | 21.82% | 25.02% | 16.13% | 30.19% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $623,000K ÷ ($—K + $3,655,000K)
= 17.05%
Henry Schein Inc's return on total capital has exhibited fluctuations over the past five years, ranging from 16.13% in 2020 to a peak of 30.19% in 2019. The return on total capital decreased to 17.05% in 2023 from 21.82% in 2022 and 25.02% in 2021. This declining trend indicates a decrease in the company's ability to generate profits relative to its total invested capital. A possible explanation could be changes in the company's operational efficiency, capital structure, or industry dynamics. Further analysis of the company's financial statements and business operations would be required to gain a more comprehensive understanding of the factors driving these fluctuations in return on total capital.
Peer comparison
Dec 31, 2023