Owens & Minor Inc (OMI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 38.61 | 49.38 | 59.88 | 66.01 | 62.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 38.61 | 49.38 | 59.88 | 66.01 | 62.55 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.61 + — – —
= 38.61
Owens & Minor Inc's cash conversion cycle has shown a declining trend over the past five years. In 2020, the company had a cash conversion cycle of 62.55 days, which increased to 66.01 days in 2021. However, from 2022 onwards, there was a consistent improvement in the cash conversion cycle, reaching 38.61 days by December 31, 2024.
A decreasing cash conversion cycle indicates that Owens & Minor Inc is becoming more efficient in managing its cash flows and working capital. This improvement can have positive implications for the company's liquidity, profitability, and overall financial health. It suggests that the company is able to convert its inventory into cash more quickly, collect receivables faster, and manage payables effectively.
Overall, the declining trend in Owens & Minor Inc's cash conversion cycle reflects enhanced efficiency in its working capital management, which can contribute to improved financial performance and sustainability in the long term.
Peer comparison
Dec 31, 2024