Owens & Minor Inc (OMI)

Owens & Minor, Inc.'s liquidity ratios have fluctuated over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has been gradually decreasing from 1.70 in 2019 to 1.11 in 2023. This may indicate a potential weakening in the company's short-term liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a declining trend from 0.58 in 2019 to 0.52 in 2023. This suggests that Owens & Minor may have less liquid assets available to cover its immediate liabilities.

Additionally, the cash ratio, representing the proportion of cash and cash equivalents to current liabilities, has been relatively low over the years, with a slight increase from 0.10 in 2019 to 0.21 in 2023. This implies that the company has limited cash resources compared to its short-term obligations.

Overall, Owens & Minor's liquidity ratios indicate a potential liquidity challenge, as both the current and quick ratios have been decreasing over the years, accompanied by relatively low cash reserves. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term financial commitments effectively.

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Additional liquidity measure

Owens & Minor, Inc.'s cash conversion cycle has exhibited fluctuations over the past five years. The trend indicates a decreasing pattern from 2021 to 2020, followed by a slight increase in 2022, and a significant reduction in 2023.

In 2023, the company's cash conversion cycle decreased to 18.41 days, demonstrating an improvement in managing its cash flow and working capital efficiency compared to the previous year. This suggests a more effective utilization of resources and faster conversion of inventory into cash, leading to a shorter operating cycle.

The reduction in the cash conversion cycle can be attributed to various factors such as better inventory management, improved accounts receivable collection, and optimized accounts payable payment terms. These enhancements indicate that Owens & Minor, Inc. is efficiently managing its working capital and converting its investments in inventory and accounts receivable into cash at a quicker pace.

Overall, the decreasing trend in the cash conversion cycle over the years reflects the company's efforts to enhance operational efficiency, strengthen liquidity position, and generate cash inflows more rapidly. This positive trajectory bodes well for Owens & Minor, Inc. in terms of financial performance and sustainability.