Henry Schein Inc (HSIC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 649,000 | 537,000 | 573,000 | 604,000 | 623,000 | 658,000 | 661,000 | 681,000 | 752,000 | 868,000 | 883,000 | 873,000 | 857,000 | 841,465 | 804,278 | 593,017 | 540,000 | 738,666 | 751,747 | 916,205 |
| Interest expense (ttm) | US$ in thousands | 131,000 | 125,000 | 116,000 | 103,000 | 87,000 | 79,000 | 62,000 | 51,000 | 44,000 | 31,000 | 30,000 | 29,000 | 28,000 | 31,591 | 35,702 | 39,188 | 41,000 | 38,742 | 40,004 | 42,303 |
| Interest coverage | 4.95 | 4.30 | 4.94 | 5.86 | 7.16 | 8.33 | 10.66 | 13.35 | 17.09 | 28.00 | 29.43 | 30.10 | 30.61 | 26.64 | 22.53 | 15.13 | 13.17 | 19.07 | 18.79 | 21.66 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $649,000K ÷ $131,000K
= 4.95
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Looking at Henry Schein Inc's interest coverage over the past few years:
- The interest coverage ratio was relatively stable around 20 during the first half of 2020, indicating the company had a comfortable margin to cover its interest expenses.
- There was a slight decline in the ratio at the end of 2020 to 13.17, which could suggest a potential decrease in the company's ability to cover interest payments.
- However, the interest coverage ratio picked up in the following quarters of 2021 and 2022, exceeding 20 again and reaching its peak at around 30 by the end of 2021 and early 2022.
- From the second half of 2022 onward, there was a noticeable decline in the interest coverage ratio, dropping to single-digit values, which may raise concerns about the company's ability to comfortably cover its interest expenses.
Overall, the trend in Henry Schein Inc's interest coverage ratio shows fluctuations over the years, with periods of strong interest coverage followed by times of weaker coverage. It is essential for investors and analysts to monitor this ratio closely to assess the company's financial health and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2024