Owens & Minor Inc (OMI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,208,810 | 8,129,120 | 8,272,090 | 7,199,340 | 8,082,450 |
| Inventory | US$ in thousands | 1,110,610 | 1,333,580 | 1,500,000 | 1,233,750 | 1,146,190 |
| Inventory turnover | 7.39 | 6.10 | 5.51 | 5.84 | 7.05 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,208,810K ÷ $1,110,610K
= 7.39
Owens & Minor, Inc.'s inventory turnover has displayed a fluctuating trend over the past five years. The inventory turnover ratio, which measures how efficiently the company is managing its inventory, indicates the number of times inventory is sold and replaced within a given period.
In 2023, Owens & Minor achieved an inventory turnover ratio of 7.39, a significant improvement from the previous year's ratio of 6.10. This suggests that the company is managing its inventory more efficiently, selling and replacing inventory more frequently in 2023.
While the 2023 ratio is higher compared to 2022, it is noteworthy that the ratio in 2021 was slightly lower at 5.53. This indicates a fluctuation in inventory turnover efficiency in the years leading up to 2023.
Overall, the trend in inventory turnover for Owens & Minor, Inc. shows some variability, but the recent increase in the ratio in 2023 indicates improved efficiency in managing inventory during that year. Efficient inventory turnover is essential for companies to optimize working capital and minimize the risk of obsolete inventory.
Peer comparison
Dec 31, 2023