Henry Schein Inc (HSIC)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 87,000 | 35,000 | 28,000 | 41,000 | 50,792 |
| Interest coverage | 7.16 | 21.49 | 30.61 | 13.17 | 17.82 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $623,000K ÷ $87,000K
= 7.16
Henry Schein Inc's interest coverage ratio has fluctuated over the past five years, with a significant decrease from 30.61 in 2021 to 7.16 in 2023. A value of 7.16 indicates that the company's operating income is able to cover its interest expenses 7.16 times over. Despite this decline, the ratio remains at a level that suggests the company is still able to comfortably meet its interest payments. It is essential to monitor this ratio closely in the future to ensure the company's ability to service its debt obligations.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Henry Schein Inc
HSIC
7.16
Owens & Minor Inc
OMI
0.65
Patterson Companies Inc
PDCO
6.42