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