Owens & Minor Inc (OMI)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,208,800 | 8,266,560 | 8,197,440 | 8,121,160 | 8,129,120 | 8,110,710 | 8,299,930 | 8,421,810 | 8,272,090 | 8,109,820 | 7,780,070 | 7,228,990 | 7,199,340 | 7,141,940 | 7,310,480 | 7,862,360 | 8,082,450 | 8,230,730 | 8,330,900 | 8,373,990 |
| Inventory | US$ in thousands | 1,110,610 | 1,084,350 | 1,168,230 | 1,288,290 | 1,333,580 | 1,508,440 | 1,525,330 | 1,447,380 | 1,500,000 | 1,514,390 | 1,530,370 | 1,322,900 | 1,233,750 | 1,095,410 | 1,040,860 | 1,108,840 | 1,146,190 | 1,153,080 | 1,237,710 | 1,210,560 |
| Inventory turnover | 7.39 | 7.62 | 7.02 | 6.30 | 6.10 | 5.38 | 5.44 | 5.82 | 5.51 | 5.36 | 5.08 | 5.46 | 5.84 | 6.52 | 7.02 | 7.09 | 7.05 | 7.14 | 6.73 | 6.92 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,208,800K ÷ $1,110,610K
= 7.39
Owens & Minor, Inc.'s inventory turnover has shown a consistent improvement over the past eight quarters. The inventory turnover ratio indicates the number of times a company sells and replaces its inventory during a specific period.
In Q4 2023, the inventory turnover ratio was 7.39, a slight decrease from the previous quarter but still higher compared to the same period in the previous year. This suggests that Owens & Minor has been efficiently managing its inventory levels, with a faster turnover rate, which can be beneficial for liquidity and profitability.
The trend of increasing inventory turnover ratios over the past eight quarters indicates that Owens & Minor has been effectively managing its inventory levels and aligning them with customer demand. This can lead to lower carrying costs, reduced risk of obsolescence, and improved cash flow as inventory is converted into sales more quickly.
Overall, the consistent improvement in inventory turnover reflects positively on Owens & Minor's inventory management efficiency and suggests that the company is operating effectively in terms of optimizing its inventory turnover to drive sales and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023