Omnicell Inc (OMCL)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.38 | 10.37 | 9.51 | 8.99 | 8.54 | 8.20 | 7.61 | 7.82 | 8.28 | 8.82 | 8.49 | 8.56 | 8.37 | 7.84 | 6.41 | 5.75 | 5.07 | 4.21 | 4.17 | 4.04 | |
| DOH | days | 35.16 | 35.20 | 38.38 | 40.58 | 42.72 | 44.51 | 47.97 | 46.67 | 44.07 | 41.37 | 43.00 | 42.63 | 43.60 | 46.57 | 56.97 | 63.46 | 72.04 | 86.79 | 87.45 | 90.26 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.38
= 35.16
Omnicell, Inc.'s Days of Inventory on Hand (DOH) has shown a decreasing trend over the past eight quarters, indicating improved efficiency in managing inventory levels. In Q1 2022, the company had an elevated DOH of 81.13 days, which has steadily declined to 61.80 days in Q4 2023. This suggests that Omnicell has been able to sell its inventory at a faster rate in recent quarters.
A lower DOH signifies that the company is able to turn its inventory into sales more quickly, potentially reducing carrying costs and minimizing the risk of obsolete inventory. The downward trend in DOH could indicate effective inventory management practices, such as better demand forecasting, streamlined procurement processes, or improved inventory control.
Overall, the decreasing trend in Omnicell's DOH is a positive indicator of the company's operational efficiency in managing its inventory levels. It suggests that the company is effectively balancing its inventory levels to meet customer demand while minimizing excess inventory holding costs.
Peer comparison
Dec 31, 2023