Owens & Minor Inc (OMI)

Short-term

Turnover ratios

Owens & Minor, Inc. has shown consistent efficiency in managing its inventory over the quarters, with the inventory turnover ranging from 6.10 to 7.62. This indicates that the company is able to sell and replace its inventory multiple times during the year, which is generally considered positive as it reduces the risk of inventory obsolescence and holding costs.

In terms of receivables turnover, the company has been able to collect its accounts receivable quite efficiently, with ratios ranging from 12.72 to 17.27. A higher receivables turnover ratio indicates that Owens & Minor is efficient in collecting payments from its customers, which is favorable for cash flow management.

The payables turnover ratio shows how quickly the company is paying its suppliers. Owens & Minor has maintained a stable payables turnover ratio between 6.86 and 7.55. A higher turnover ratio suggests that the company is taking longer to pay its suppliers, which may indicate a strong bargaining position or cash flow management.

The working capital turnover ratio reflects how effectively the company is utilizing its working capital to generate sales. Owens & Minor has shown a significant improvement in this ratio over the quarters, with figures ranging from 10.97 to 49.00. A higher working capital turnover ratio indicates that the company is efficiently using its resources to generate revenue.

Overall, based on the activity ratios analyzed, Owens & Minor, Inc. appears to be effectively managing its operating cycle, inventory, receivables, payables, and working capital to support its operations and financial performance.

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Average number of days

Owens & Minor, Inc.'s activity ratios can provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand have shown a decreasing trend over the past eight quarters, indicating that Owens & Minor has been managing its inventory more efficiently.
- This decrease suggests that the company has been selling its inventory at a faster rate, which can help improve cash flow and reduce holding costs.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have also shown a decreasing trend over the quarters, indicating that the company has been collecting its receivables more quickly.
- A lower DSO reflects a more effective credit and collections process, which can improve cash flow and reduce the risk of bad debts.

3. Number of Days of Payables:
- The number of days of payables has been relatively stable over the quarters, with a slight increase in Q3 and Q4 of 2023 compared to the previous quarters.
- Owens & Minor's ability to maintain a consistent number of days of payables suggests a stable relationship with its suppliers and effective management of working capital.

In conclusion, Owens & Minor, Inc. has shown improvements in managing its inventory and collecting receivables, which can positively impact its liquidity and financial performance. However, the stability in the number of days of payables indicates the company's prudent approach to managing its payables.

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Long-term

Owens & Minor, Inc.'s long-term activity ratios, namely fixed asset turnover and total asset turnover, have shown a positive trend over the past eight quarters.

The fixed asset turnover ratio has been increasing steadily, indicating that the company is generating more revenue from its fixed assets each quarter. This suggests that Owens & Minor is efficiently utilizing its fixed assets to generate sales and operating income.

Similarly, the total asset turnover ratio has also been on an upward trajectory, demonstrating an improvement in the company's overall efficiency in generating sales from its total assets. This indicates that Owens & Minor is managing its assets efficiently to generate revenue.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that Owens & Minor, Inc. has been effectively managing its assets to drive revenue growth over the long term. This could be a positive indicator of the company's operational efficiency and financial performance.