Henry Schein Inc (HSIC)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $3,655,000K
= 0.00
Based on the data provided, Henry Schein Inc has consistently maintained a debt-to-equity ratio of 0.00 for the past five years, including the latest fiscal year ending on December 31, 2023. A debt-to-equity ratio of 0.00 indicates that the company has zero debt relative to its equity, implying that the company is financing its operations primarily through equity rather than debt.
Having a debt-to-equity ratio of 0.00 could suggest that Henry Schein Inc has a conservative financial structure, with a low reliance on debt to fund its operations and growth. This can be viewed positively by investors and creditors as it indicates a lower financial risk and potential for financial distress due to a lack of significant debt obligations.
However, while a low debt-to-equity ratio is generally seen as favorable, it is important to note that excessive reliance on equity financing may also limit the company's ability to leverage debt for potential growth opportunities or tax advantages. Additionally, the absence of debt in the capital structure may result in missed opportunities to optimize the cost of capital.
Overall, the consistent 0.00 debt-to-equity ratio of Henry Schein Inc reflects a prudent and conservative approach to financial management, although careful consideration should be given to balancing debt and equity financing for optimal capital structure and growth prospects in the long term.
Peer comparison
Dec 31, 2023