Omnicell Inc (OMCL)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,142,980 | 1,260,680 | 993,295 | 806,221 | 768,931 |
| Payables | US$ in thousands | 45,028 | 63,389 | 71,513 | 40,309 | 46,380 |
| Payables turnover | 25.38 | 19.89 | 13.89 | 20.00 | 16.58 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,142,980K ÷ $45,028K
= 25.38
Omnicell, Inc.'s payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio measures how efficiently a company manages its supplier payments. A higher ratio indicates that the company is paying its suppliers more quickly.
In 2023, Omnicell, Inc. demonstrated a significantly improved payables turnover ratio of 14.44, compared to the previous year's ratio of 11.15 in 2022. This increase suggests that the company paid its suppliers more frequently during the year, which could be a result of better cash management or negotiation terms with suppliers.
Comparing the 2023 ratio to earlier years, it also outperformed the ratios of 8.07 in 2021, 11.88 in 2020, and 9.92 in 2019. This indicates a general positive trend in the efficiency of managing supplier payments over the last five years.
Overall, the increasing payables turnover ratio reflects a positive financial aspect for Omnicell, Inc., signaling effective management of its accounts payable and potentially improved relationships with suppliers. However, it is important to consider other financial metrics and factors to gain a comprehensive understanding of the company's financial performance and liquidity management.
Peer comparison
Dec 31, 2023