Henry Schein Inc (HSIC)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 905,788 | 683,659 | 616,598 | 615,151 |
| Interest expense (ttm) | US$ in thousands | 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 | 50,792 | 62,906 | 70,963 | 75,413 |
| Interest coverage | 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 | 17.83 | 10.87 | 8.69 | 8.16 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $623,000K ÷ $87,000K
= 7.16
The interest coverage ratio for Henry Schein Inc has shown a generally positive trend over the past few quarters, indicating the company's ability to meet its interest obligations comfortably.
The ratio has been consistently above 1, indicating that the company is generating sufficient operating income to cover its interest expenses.
There was a significant increase in the interest coverage ratio from the end of 2020 to the beginning of 2021, reaching a peak of 30.61 in March 2022. This suggests a strong performance and financial stability during this period.
Although there was a slight decline in the interest coverage ratio in the most recent quarters of 2023, the ratio remains healthy, reflecting the company's continued ability to service its debt obligations.
Overall, the trend in Henry Schein Inc.'s interest coverage ratio indicates a solid financial position and a strong ability to manage its interest expenses effectively.
Peer comparison
Dec 31, 2023