Omnicell Inc (OMCL)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,190,083 | 1,226,542 | 1,272,662 | 1,315,183 | 1,344,391 | 1,353,971 | 1,296,691 | 1,226,490 | 1,155,217 | 1,093,879 | 1,013,703 | 942,467 | 926,289 | 968,427 | 974,187 | 981,817 | 945,018 | 860,485 | 835,947 | 807,207 |
| Total current assets | US$ in thousands | 927,571 | 913,751 | 881,361 | 934,969 | 881,812 | 849,132 | 787,770 | 775,604 | 780,702 | 888,716 | 984,288 | 903,999 | 829,414 | 963,404 | 465,165 | 478,323 | 483,238 | 477,079 | 429,839 | 413,707 |
| Total current liabilities | US$ in thousands | 367,792 | 369,361 | 370,157 | 453,968 | 428,446 | 376,681 | 373,514 | 951,012 | 876,158 | 338,662 | 317,112 | 292,273 | 276,423 | 233,876 | 236,563 | 248,440 | 236,996 | 228,170 | 211,384 | 210,622 |
| Working capital turnover | 2.13 | 2.25 | 2.49 | 2.73 | 2.97 | 2.87 | 3.13 | — | — | 1.99 | 1.52 | 1.54 | 1.68 | 1.33 | 4.26 | 4.27 | 3.84 | 3.46 | 3.83 | 3.97 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,190,083K ÷ ($927,571K – $367,792K)
= 2.13
Omnicell, Inc.'s working capital turnover has shown a declining trend from Q1 2022 to Q4 2023, ranging from 3.04 to 2.05. This ratio measures how effectively the company is utilizing its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to support its operations.
The decreasing trend in Omnicell's working capital turnover could suggest that the company is becoming less efficient in managing its working capital to support its revenue generation. It may indicate potential issues with inventory management, accounts receivable collection, or accounts payable management.
It is important for Omnicell to analyze the drivers behind this declining trend in working capital turnover and take appropriate actions to improve efficiency in managing its working capital. This may involve optimizing inventory levels, tightening credit policies for accounts receivable, and negotiating favorable payment terms with suppliers to maximize the utilization of working capital and improve overall financial performance.
Peer comparison
Dec 31, 2023