Omnicell Inc (OMCL)
Payables 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 |
| Payables | US$ in thousands | 45,028 | 49,920 | 47,192 | 63,407 | 63,389 | 73,517 | 68,400 | 71,645 | 71,513 | 74,656 | 56,195 | 50,759 | 40,309 | 37,203 | 34,587 | 46,788 | 46,380 | 48,449 | 40,183 | 38,466 |
| Payables turnover | 25.38 | 24.13 | 26.32 | 20.02 | 19.89 | 16.41 | 16.74 | 14.96 | 13.89 | 12.32 | 15.28 | 16.23 | 20.00 | 21.72 | 21.16 | 13.87 | 11.80 | 9.18 | 10.79 | 10.92 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,142,977K ÷ $45,028K
= 25.38
Omnicell, Inc.'s payables turnover has shown a generally increasing trend over the past eight quarters, indicating an improvement in the efficiency of managing its accounts payable. The company's payables turnover ratio has ranged from 8.61 to 14.73 during this period.
A high payables turnover ratio suggests that Omnicell is paying off its suppliers quickly, which may indicate good relationships with suppliers or favorable credit terms. This can also indicate effective working capital management and liquidity.
The company's payables turnover ratio peaked at 14.73 in Q2 2023, reflecting the most efficient management of its accounts payable during this period. This increase in payables turnover from Q2 2022 to Q2 2023 indicates that Omnicell has been able to improve its payment practices and maximize the utilization of credit terms offered by its suppliers.
Overall, the upward trend in Omnicell's payables turnover ratio demonstrates a positive development in the company's ability to manage its accounts payable effectively, which can contribute to stronger financial performance and cash flow management in the future.
Peer comparison
Dec 31, 2023