Omnicell Inc (OMCL)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 7.23 | 5.91 | 4.79 | 4.81 | 4.97 | |
| DOH | days | 50.47 | 61.80 | 76.18 | 75.81 | 73.39 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.23
= 50.47
Omnicell Inc's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years. In December 2020, the DOH stood at 73.39 days, indicating that on average, the company held its inventory for approximately 73 days. Subsequently, the DOH increased to 75.81 days by December 2021 and further to 76.18 days by December 2022, suggesting a lengthening of the time taken to sell off inventory.
However, there was a significant improvement in inventory management efficiency by December 2023 as the DOH decreased to 61.80 days, signifying a more rapid turnover of inventory. This positive trend continued into December 2024, with the DOH further declining to 50.47 days, indicating a more streamlined inventory management process.
The decrease in the Days of Inventory on Hand from 2022 to 2024 suggests that Omnicell Inc has been able to optimize its inventory turnover, leading to a potentially more efficient allocation of resources and improved cash flow. Further analysis and comparison with industry benchmarks can provide additional insights into the company's inventory management effectiveness.
Peer comparison
Dec 31, 2024