Omnicell Inc (OMCL)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 2.52 | 2.06 | 0.89 | 3.00 | 2.04 |
| Quick ratio | 1.99 | 1.50 | 0.69 | 2.48 | 1.46 |
| Cash ratio | 1.30 | 0.80 | 0.41 | 1.79 | 0.54 |
Omnicell, Inc.'s liquidity position, as measured by the current ratio, has shown improvement over the past five years. The current ratio increased from 2.04 in 2019 to 2.52 in 2023, indicating the company's ability to cover its short-term liabilities with its current assets has strengthened. This rise in the current ratio suggests Omnicell has sufficient liquidity to meet its short-term obligations comfortably.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also improved over the years. The quick ratio increased from 1.58 in 2019 to 2.10 in 2023, signifying a stronger ability to meet short-term obligations without relying on the sale of inventory.
The cash ratio, focusing solely on the most liquid assets, shows an upward trend as well. The cash ratio increased from 0.66 in 2019 to 1.42 in 2023, indicating that Omnicell holds more cash and cash equivalents relative to its current liabilities, which enhances its ability to cover immediate obligations.
Overall, the trend in Omnicell's liquidity ratios over the past five years reflects a positive trajectory, with an increasing current ratio, quick ratio, and cash ratio. This indicates improved liquidity and a stronger financial position, suggesting that the company is well-equipped to meet its short-term obligations efficiently.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 98.21 | 105.80 | 94.64 | 100.33 | 113.59 |
The cash conversion cycle of Omnicell, Inc. has shown fluctuations over the past five years. The company's cash conversion cycle decreased from 137.74 days in 2019 to 108.28 days in 2021, indicating an improvement in efficiency in converting its investment in inventory and receivables into cash.
However, the cash conversion cycle increased in 2022 to 127.80 days before slightly improving to 116.72 days in 2023. This increase suggests a potential slowdown in the company's ability to convert its resources into cash.
Overall, Omnicell, Inc. should continue monitoring and managing its cash conversion cycle to ensure optimal liquidity and operational efficiency. Efforts to shorten the cycle time can improve cash flow and overall financial health.