Omnicell Inc (OMCL)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 50.68 | 55.35 | 53.74 | 59.43 | 61.80 | 63.01 | 68.57 | 73.21 | 76.18 | 77.50 | 84.04 | 81.13 | 75.81 | 70.32 | 72.64 | 71.90 | 73.39 | 78.72 | 87.27 | 86.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 50.68 | 55.35 | 53.74 | 59.43 | 61.80 | 63.01 | 68.57 | 73.21 | 76.18 | 77.50 | 84.04 | 81.13 | 75.81 | 70.32 | 72.64 | 71.90 | 73.39 | 78.72 | 87.27 | 86.71 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.68 + — – —
= 50.68
Omnicell Inc's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown a fluctuating trend over the past few years.
From March 2020 to December 2024, the cash conversion cycle decreased from 86.71 days to 50.68 days. This downward trend indicates that Omnicell Inc has been managing its working capital more efficiently, potentially reducing the time it takes to sell inventory and collect cash from customers.
The company experienced a notable improvement in its cash conversion cycle from March 2023 to December 2024, reaching its lowest point of 50.68 days by the end of 2024. This suggests that Omnicell Inc has been able to streamline its operations, optimize inventory management, and enhance its accounts receivable collection processes.
Overall, the decreasing trend in Omnicell Inc's cash conversion cycle reflects the company's efforts to improve its liquidity and operational efficiency, which could contribute to its financial health and sustainability in the long run.
Peer comparison
Dec 31, 2024