Omnicell Inc (OMCL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 50.47 | 61.80 | 76.18 | 75.81 | 73.39 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 50.47 | 61.80 | 76.18 | 75.81 | 73.39 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.47 + — – —
= 50.47
Omnicell Inc's cash conversion cycle has shown fluctuations over the years. The cycle was 73.39 days at December 31, 2020, before increasing to 75.81 days by December 31, 2021, and further to 76.18 days by the end of 2022. However, there was a significant improvement by December 31, 2023, with the cycle decreasing to 61.80 days, followed by a further reduction to 50.47 days by December 31, 2024.
A decreasing cash conversion cycle indicates that Omnicell Inc has been able to efficiently manage its working capital and convert its resources into cash more rapidly. This trend suggests improved efficiency in converting inventory into sales and then receiving payment, potentially leading to enhanced liquidity and profitability for the company.
It would be beneficial for Omnicell Inc to analyze the factors contributing to the fluctuations in its cash conversion cycle to identify areas for further improvement and sustainability of their cash management strategies.
Peer comparison
Dec 31, 2024