Owens & Minor Inc (OMI)
Payables 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 |
| Payables | US$ in thousands | 1,171,880 | 1,147,410 | 1,001,960 | 1,000,190 | 808,035 |
| Payables turnover | 7.00 | 7.08 | 8.26 | 7.20 | 10.00 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,208,810K ÷ $1,171,880K
= 7.00
Owens & Minor, Inc.'s payables turnover over the past five years indicates how efficiently the company is managing its accounts payable. A higher turnover ratio suggests that the company is paying off its suppliers more frequently within a given period, which could be a sign of strong liquidity management.
In 2021, the payables turnover ratio was 8.26, indicating that Owens & Minor, Inc. was paying off its suppliers approximately 8.26 times during the year. This suggests efficient management of trade payables. The ratio decreased slightly to 7.20 in 2020 but remained relatively stable.
Compared to 2019, the payables turnover ratio dropped significantly to 10.00 in that year. This might indicate either a change in the company's payment policies or a change in its relationship with suppliers.
Overall, Owens & Minor, Inc. has shown consistent management of its payables over the years, with the ratio staying within a relatively narrow range. This stability could indicate a consistent approach to managing supplier relationships and working capital efficiently.
Peer comparison
Dec 31, 2023