Omnicell Inc (OMCL)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.16 | 35.20 | 38.38 | 40.58 | 42.72 | 44.51 | 47.97 | 46.67 | 44.07 | 41.37 | 43.00 | 42.63 | 43.60 | 46.57 | 56.97 | 63.46 | 72.04 | 86.79 | 87.45 | 90.26 |
| Days of sales outstanding (DSO) | days | 77.30 | 81.12 | 78.55 | 89.38 | 81.31 | 95.46 | 87.41 | 86.44 | 76.11 | 77.99 | 75.60 | 79.65 | 74.91 | 70.90 | 70.78 | 86.65 | 84.34 | 86.27 | 89.66 | 92.01 |
| Number of days of payables | days | 14.38 | 15.13 | 13.87 | 18.23 | 18.35 | 22.24 | 21.81 | 24.40 | 26.28 | 29.62 | 23.88 | 22.49 | 18.25 | 16.81 | 17.25 | 26.32 | 30.93 | 39.74 | 33.82 | 33.41 |
| Cash conversion cycle | days | 98.08 | 101.19 | 103.06 | 111.73 | 105.67 | 117.72 | 113.57 | 108.72 | 93.90 | 89.73 | 94.72 | 99.79 | 100.27 | 100.66 | 110.51 | 123.78 | 125.45 | 133.33 | 143.29 | 148.86 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.16 + 77.30 – 14.38
= 98.08
The cash conversion cycle is a critical metric that reflects Omnicell, Inc.'s efficiency in managing its working capital. The trend over the past eight quarters indicates fluctuations in the company's ability to convert its investments in inventory and accounts receivable into cash.
The company's cash conversion cycle ranged from 116.72 days to 133.05 days in the past year, showing variability in its working capital efficiency. Generally, a shorter cash conversion cycle is preferred as it indicates that the company is able to quickly convert its resources into cash, thereby improving liquidity.
Omnicell's cash conversion cycle was relatively stable in Q4 2023 compared to the prior quarter, indicating consistent working capital management. However, the cycle was shorter in Q4 2023 compared to Q3 2022, suggesting an improvement in efficiency over this longer time horizon.
Analyzing the trend over multiple quarters provides a broader perspective on the company's working capital performance. Omnicell should continue monitoring and managing its cash conversion cycle to ensure optimal working capital utilization and sustained liquidity.
Peer comparison
Dec 31, 2023