Owens & Minor Inc (OMI)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 49.38 59.88 66.19 62.55 51.76
Days of sales outstanding (DSO) days
Number of days of payables days 52.11 51.52 44.21 50.71 36.49
Cash conversion cycle days -2.72 8.36 21.98 11.84 15.27

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 49.38 + — – 52.11
= -2.72

The cash conversion cycle of Owens & Minor, Inc. has shown fluctuations over the past five years. In 2019 and 2020, the company had a consistent cash conversion cycle of around 42 days. However, in 2021, there was a significant increase to 47.22 days, indicating a longer time taken by the company to convert its investments in inventory back to cash.

Subsequently, in 2022, the cash conversion cycle decreased to 36.35 days, showing an improvement in the efficiency of the company in managing its working capital. This trend continued in 2023, with a further decrease to 18.41 days, indicating that Owens & Minor, Inc. was able to streamline its operations and convert inventory into cash more quickly.

Overall, a lower cash conversion cycle is indicative of improved liquidity and efficiency in managing working capital. By reducing the time it takes to convert inventory to cash, Owens & Minor, Inc. may have enhanced its financial health and operational performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Owens & Minor Inc
OMI
-2.72
Henry Schein Inc
HSIC
80.23
Patterson Companies Inc
PDCO
33.05