Omnicell Inc (OMCL)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,187,990 | 1,342,310 | 1,144,190 | 925,486 | 945,018 |
| Total current assets | US$ in thousands | 927,571 | 881,812 | 780,702 | 829,414 | 483,238 |
| Total current liabilities | US$ in thousands | 367,792 | 428,446 | 876,158 | 276,423 | 236,996 |
| Working capital turnover | 2.12 | 2.96 | — | 1.67 | 3.84 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,187,990K ÷ ($927,571K – $367,792K)
= 2.12
Omnicell, Inc.'s working capital turnover has exhibited fluctuations over the past five years, indicating changes in the efficiency of the company's working capital management. In 2023 and 2022, the working capital turnover ratios were 2.05 and 2.86, respectively. These figures suggest that, on average, the company generated $2.05 and $2.86 in net sales for every dollar invested in working capital during those years.
The declining trend in working capital turnover from 2022 to 2023 could indicate a decrease in the company's efficiency in utilizing its working capital to generate sales. It may imply that Omnicell, Inc. was less effective in managing its current assets and liabilities to support sales growth during that period.
Furthermore, comparing the 2023 turnover ratio to prior years, it appears lower than the 2019 and 2021 figures but higher than the 2020 ratio. The absence of a working capital turnover figure for 2021 suggests that the company may have experienced challenges or changes impacting its working capital management during that year.
Overall, the varying levels of working capital turnover highlight the importance for Omnicell, Inc. to closely monitor and optimize its working capital management practices to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2023