Omnicell Inc (OMCL)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,142,977 | 1,204,430 | 1,241,858 | 1,269,695 | 1,260,619 | 1,206,309 | 1,144,925 | 1,071,889 | 993,275 | 919,941 | 858,858 | 823,686 | 806,116 | 807,988 | 731,896 | 648,726 | 547,243 | 444,993 | 433,693 | 420,215 |
| Inventory | US$ in thousands | 110,099 | 116,144 | 130,577 | 141,156 | 147,549 | 147,096 | 150,461 | 137,056 | 119,924 | 104,259 | 101,185 | 96,208 | 96,298 | 103,101 | 114,245 | 112,785 | 108,011 | 105,813 | 103,906 | 103,909 |
| 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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,142,977K ÷ $110,099K
= 10.38
Omnicell, Inc.'s inventory turnover has shown a generally increasing trend over the past eight quarters, reflecting a more efficient management of its inventory. The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a certain period. A higher inventory turnover indicates that the company is selling its inventory more frequently, which is generally considered positive as it reduces the risk of inventory obsolescence and holding costs.
In Q4 2023, Omnicell achieved an inventory turnover of 5.91, which was higher than in the previous quarter (Q3 2023) at 5.79. This suggests that the company's inventory was sold and replaced approximately 5.91 times during the quarter. The efficiency in managing inventory improved, which could indicate effective inventory control, strong demand for its products or services, or efficient production processes.
Looking at the longer-term trend, Omnicell's inventory turnover has been steadily increasing since Q1 2022. This positive trend indicates that the company has been able to manage its inventory more effectively and improve its operational efficiency in recent quarters. By turning over its inventory more quickly, Omnicell can free up working capital that would otherwise be tied up in unsold inventory.
Overall, Omnicell, Inc.'s improving inventory turnover ratios demonstrate sound inventory management practices and operational efficiency that are favorable for the company's financial health.
Peer comparison
Dec 31, 2023
Dec 31, 2023