Omnicell Inc (OMCL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.71 | 4.48 | 4.75 | 4.87 | 4.33 | |
| DSO | days | 77.43 | 81.43 | 76.85 | 74.98 | 84.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.71
= 77.43
Omnicell, Inc.'s Days Sales Outstanding (DSO) is a measure of the average number of days the company takes to collect revenue after making a sale. A lower DSO indicates that the company is more efficient in collecting payments from its customers.
Over the past five years, Omnicell's DSO has fluctuated, ranging from 77.67 days in 2021 to 88.85 days in 2019. A decrease in DSO is generally seen as a positive trend as it signifies quicker collection of receivables, potentially improving the company's cash flow and liquidity position.
In 2023, Omnicell's DSO decreased to 80.19 days from 84.34 days in 2022. This improvement suggests that the company may have implemented more effective credit and collection policies, resulting in faster revenue collection from its customers.
Overall, Omnicell's downward trend in DSO over the years indicates an improvement in its accounts receivable management, which could have a positive impact on its overall financial health and working capital efficiency.
Peer comparison
Dec 31, 2023