Omnicell Inc (OMCL)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.72 | 4.50 | 4.65 | 4.08 | 4.49 | 3.82 | 4.18 | 4.22 | 4.80 | 4.68 | 4.83 | 4.58 | 4.87 | 5.15 | 5.16 | 4.21 | 4.33 | 4.23 | 4.07 | 3.97 | |
| DSO | days | 77.30 | 81.12 | 78.55 | 89.38 | 81.31 | 95.46 | 87.41 | 86.44 | 76.11 | 77.99 | 75.60 | 79.65 | 74.91 | 70.90 | 70.78 | 86.65 | 84.34 | 86.27 | 89.66 | 92.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.72
= 77.30
Omnicell, Inc.'s Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates faster cash collection and more efficient credit management.
Examining Omnicell's DSO trend over the past eight quarters, we observe fluctuations in the metric. In Q1 2023, the DSO spiked to 92.73 days, reflecting a delay in collecting sales revenue compared to the previous quarter. However, in Q2 and Q4 2023, the DSO decreased to 80.93 days and 80.19 days, respectively, indicating an improvement in collections efficiency.
Comparing year-over-year performance, Q4 and Q3 2022 recorded higher DSO figures of 84.34 days and 98.71 days, respectively. This suggests that in Q4 2023, Omnicell made progress in accelerating its cash collection cycle compared to the same period in the previous year.
Overall, while there have been fluctuations in Omnicell's DSO, the recent quarters show a trend towards improving efficiency in collecting sales revenue. Management should continue monitoring and managing DSO to ensure timely collection and optimal cash flow management.
Peer comparison
Dec 31, 2023