Omnicell Inc (OMCL)

Liquidity ratios

	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
Current ratio	2.52	2.47	2.38	2.06	2.06	2.25	2.11	0.82	0.89	2.62	3.10	3.09	3.00	4.12	1.97	1.93	2.04	2.09	2.03	1.96
Quick ratio	1.99	1.98	1.85	1.48	1.50	1.68	1.52	0.60	0.69	2.14	2.63	2.61	2.48	3.59	1.36	1.36	1.46	1.49	1.39	1.33
Cash ratio	1.30	1.24	1.11	0.77	0.80	0.74	0.69	0.29	0.41	1.45	1.97	1.91	1.79	2.79	0.56	0.42	0.54	0.60	0.41	0.37

Omnicell, Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been fluctuating over the quarters, ranging from 2.06 to 2.52, and generally staying above 2. This suggests that the company has more than enough current assets to cover its current liabilities. However, the ratio dipped significantly in Q1 2022, possibly indicating a liquidity strain during that period.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a similar trend as the current ratio, with values ranging from 1.57 to 2.10. This indicates that Omnicell has a solid ability to meet its short-term obligations even without relying on the sale of inventory.

When focusing specifically on the cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, Omnicell has shown an improving trend over the quarters, reaching a high of 1.42 in Q4 2023. This indicates a strengthening liquidity position as the company holds more cash to cover its short-term obligations.

Overall, Omnicell, Inc.'s liquidity ratios demonstrate a generally healthy liquidity position, with the current and quick ratios consistently above 1 and showing improvements in the cash ratio. However, analysts may want to further investigate the dip in the current ratio in Q1 2022 to understand the factors behind this anomaly and assess the company's overall liquidity management strategies.

Additional liquidity measure

		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
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

Omnicell, Inc.'s cash conversion cycle has shown fluctuations over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory into cash flow from sales.

From the data provided, we observe that the cash conversion cycle has ranged from a low of 116.72 days to a high of 133.05 days. Generally, a shorter cash conversion cycle is more favorable as it indicates that the company is able to turn its inventory into cash more quickly.

In the most recent quarter, Q4 2023, the cash conversion cycle was 116.72 days, showing an improvement compared to the previous quarter Q3 2023 (119.82 days). This suggests that Omnicell, Inc. was able to manage its inventory more efficiently in Q4 2023.

However, it is worth noting that the cash conversion cycle increased from Q4 2022 to Q1 2023, reaching a peak of 133.05 days. This prolonged cycle may indicate potential issues with inventory management, payment collection, or sales efficiency during that period.

Overall, while there have been fluctuations in Omnicell, Inc.'s cash conversion cycle over the past eight quarters, the company should strive to maintain a shorter cycle to improve its working capital efficiency and financial performance.