Henry Schein Inc (HSIC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 649,000 | 623,000 | 752,000 | 857,000 | 540,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,393,000 | 3,655,000 | 3,446,000 | 3,425,000 | 3,348,170 |
| Return on total capital | 19.13% | 17.05% | 21.82% | 25.02% | 16.13% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $649,000K ÷ ($—K + $3,393,000K)
= 19.13%
Henry Schein Inc's return on total capital has exhibited variability over the past five years. The return on total capital increased from 16.13% as of December 31, 2020, to 25.02% as of December 31, 2021, indicating a significant improvement in the company's ability to generate profit relative to its total capital employed.
However, in the subsequent years, the return on total capital experienced fluctuations. By December 31, 2022, the return on total capital decreased to 21.82%, showing a slight decline from the previous year. This was followed by a further reduction to 17.05% by December 31, 2023, suggesting a possible dip in the efficiency of capital utilization.
Nevertheless, there was a recovery in the return on total capital by December 31, 2024, reaching 19.13%. Although higher compared to the previous year, the return on total capital still remained below the levels seen in 2021 and 2022.
Overall, the trend in Henry Schein Inc's return on total capital reflects a mix of improvements and fluctuations, indicating varying levels of profitability relative to the capital investment over the five-year period under review. It would be essential for stakeholders to continue monitoring this ratio to assess the company's financial performance and efficiency in capital allocation.
Peer comparison
Dec 31, 2024