Henry Schein Inc (HSIC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.89 | 2.69 | 2.57 | 2.47 | 2.50 | 2.36 | 2.32 | 2.35 | 2.48 | 2.44 | 2.42 | 2.32 | 2.32 | 2.48 | 2.45 | 2.53 | 2.39 | 2.51 | 2.52 | 2.55 |
The solvency ratios for Henry Schein Inc, as reflected in the data provided, indicate a consistent and stable financial position over the period under review. The debt-to-assets, debt-to-capital, and debt-to-equity ratios consistently maintain a value of 0.00, suggesting that the company operates with minimal debt relative to its assets, capital, and equity.
The financial leverage ratio, on the other hand, exhibits some variability but generally remains within a relatively narrow range over the period analyzed. The ratio shows an upward trend starting at 2.32 in March 2020, peaking at 2.89 in December 2023, and fluctuating around that range in subsequent periods.
Overall, the financial leverage ratio indicates that Henry Schein Inc has a moderate level of financial leverage, with a tendency to increase slightly in recent quarters. This suggests that the company is utilizing debt as a strategic component of its capital structure but is managing it within reasonable bounds to support its operations and growth objectives while maintaining a healthy solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to cover its interest expense with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a stronger ability to meet interest payments.
Looking at the interest coverage ratios of Henry Schein Inc over the past few quarters, we can observe a generally improving trend. The interest coverage ratio has been consistently above 1, indicating that the company is generating enough earnings to cover its interest expenses.
The trend shows an increasing interest coverage ratio over the quarters, starting from a low of 7.16 in December 2019 to a peak of 30.61 in March 2022. This indicates a significant improvement in the company's ability to cover its interest obligations with its operating earnings.
The high and increasing interest coverage ratios suggest that Henry Schein Inc has a strong financial position and is effectively managing its debt obligations. Investors and creditors may view this positively as it indicates a lower risk of default due to an inability to make interest payments.
Overall, the consistent improvement in the interest coverage ratio reflects positively on Henry Schein Inc's financial health and ability to meet its debt obligations in the future.