Henry Schein Inc (HSIC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,218,000 | 10,573,000 | 8,607,000 | 8,481,000 | 7,773,000 |
| Total stockholders’ equity | US$ in thousands | 3,393,000 | 3,655,000 | 3,446,000 | 3,425,000 | 3,348,170 |
| Financial leverage ratio | 3.01 | 2.89 | 2.50 | 2.48 | 2.32 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,218,000K ÷ $3,393,000K
= 3.01
The financial leverage ratio of Henry Schein Inc has been gradually increasing over the past five years, signaling a trend towards higher financial leverage. The ratio was 2.32 as of December 31, 2020, and it has steadily risen to 3.01 by the end of December 31, 2024.
This suggests that the company is relying more on debt financing compared to its equity, which may indicate increased financial risk. A higher financial leverage ratio implies a greater proportion of the company's assets are funded by debt, which can amplify both returns and losses.
Investors and creditors should monitor this trend closely, as an excessively high financial leverage ratio can potentially lead to financial instability and difficulty in meeting debt obligations. Henry Schein Inc may need to carefully manage its debt levels and explore strategies to balance its capital structure for sustainable growth and financial health.
Peer comparison
Dec 31, 2024