Omnicell Inc (OMCL)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 10.38 | 8.54 | 8.28 | 8.37 | 7.12 | |
| DOH | days | 35.16 | 42.72 | 44.07 | 43.60 | 51.27 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.38
= 35.16
Omnicell, Inc.'s days of inventory on hand (DOH) have shown a fluctuating trend over the past five years. In the most recent fiscal year, as of December 31, 2023, the company managed to reduce its DOH to 61.80 days compared to 76.18 days in the prior year. This decrease in DOH indicates that Omnicell has become more efficient in managing its inventory levels, potentially resulting in lower carrying costs and a faster inventory turnover.
Looking further back, the DOH was relatively stable around the mid-70s range in the years 2021 and 2022. However, there was a noticeable improvement in inventory management in 2023, reflecting the company's efforts to optimize its inventory control processes.
In contrast, Omnicell faced a higher DOH of 85.68 days in 2019, indicating that the company held inventory for a longer period before it was sold or used in production. The subsequent declines in DOH over the following years suggest that Omnicell has made strides in streamlining its inventory management practices.
Overall, the decreasing trend in Omnicell's days of inventory on hand demonstrates a positive shift towards more efficient inventory management, which can lead to enhanced liquidity, reduced carrying costs, and improved overall operational performance.
Peer comparison
Dec 31, 2023