Owens & Minor Inc (OMI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 9.45 | 7.39 | 6.10 | 5.53 | 5.84 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | 49.00 | 13.66 | 10.01 | 10.73 |
Inventory Turnover:
- The inventory turnover ratio measures how efficiently Owens & Minor Inc is managing its inventory.
- The trend shows a slight decrease from 5.84 in 2020 to 5.53 in 2021, followed by an increase to 6.10 in 2022 and further to 7.39 in 2023, then a significant jump to 9.45 in 2024.
- A higher turnover ratio indicates that inventory is selling more quickly, which is generally positive as it reduces holding costs and indicates strong sales.
Receivables Turnover:
- The receivables turnover ratio assesses how effectively the company is collecting payments from its customers. In this case, the data is absent for all years, so an analysis cannot be conducted based on the provided information.
Payables Turnover:
- The payables turnover ratio evaluates how well the company pays its suppliers. However, no data is available for any year in this context, making it impossible to assess how effectively Owens & Minor Inc manages its accounts payable.
Working Capital Turnover:
- Working capital turnover ratio indicates how efficiently the company generates revenue relative to its working capital.
- Significant fluctuations are observed from 10.73 in 2020 to 10.01 in 2021, followed by a substantial increase to 13.66 in 2022 and a remarkable surge to 49.00 in 2023. No data is provided for 2024.
- The sharp increase in 2023 could suggest that Owens & Minor Inc efficiently utilizes its working capital to generate sales, potentially indicating improved operational efficiency or increased revenue generation compared to the previous years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 38.61 | 49.38 | 59.88 | 66.01 | 62.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Owens & Minor Inc's Days of Inventory on Hand (DOH) ratio has shown a decreasing trend over the years, indicating that the company is managing its inventory levels more efficiently. From 62.55 days in December 2020 to 38.61 days in December 2024, the company has been able to reduce the number of days it takes to sell its inventory.
On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not provided in the data, which limits our ability to assess the company's efficiency in collecting receivables and paying its suppliers. Without this information, we are unable to provide a complete analysis of Owens & Minor Inc's activity ratios.
Overall, based on the available data, it appears that Owens & Minor Inc has been successful in improving its inventory management efficiency as indicated by the decreasing trend in the Days of Inventory on Hand ratio. To gain a more comprehensive understanding of the company's overall working capital management, it would be beneficial to have additional information on its DSO and payables turnover ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 11.59 | 19.14 | 18.42 |
| Total asset turnover | 2.30 | 2.03 | 1.85 | 2.77 | 2.54 |
The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate sales. From the data provided for Owens & Minor Inc:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio has shown a generally increasing trend from 18.42 in 2020 to 19.14 in 2021, indicating that the company was able to generate $19.14 in sales for every dollar invested in fixed assets in 2021.
- However, there was a significant decline in the ratio to 11.59 in 2022, which suggests a potential decrease in efficiency in utilizing fixed assets to generate sales.
- The data for 2023 and 2024 is not available, indicating a lack of information for further analysis of the trend.
2. Total Asset Turnover:
- The total asset turnover ratio represents the company's ability to generate sales from all its assets.
- Owens & Minor Inc's total asset turnover ratio has fluctuated over the years, from 2.54 in 2020 to 2.77 in 2021, indicating an improvement in utilizing total assets to generate sales.
- However, there was a decline in the ratio to 1.85 in 2022, which may suggest a decrease in efficiency in generating sales from total assets.
- The ratio improved slightly to 2.03 in 2023 and further to 2.30 in 2024, showing some recovery in the company's ability to generate sales from its total assets.
In summary, while the company showed improvements in asset turnover ratios in some years, there were fluctuations and declines in others. More detailed analysis and comparison with industry benchmarks would be necessary to assess Owens & Minor Inc's long-term efficiency in utilizing its assets to generate sales effectively.