Owens & Minor Inc (OMI)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 49.38 | 47.88 | 52.02 | 57.90 | 59.88 | 67.88 | 67.08 | 62.73 | 66.19 | 68.16 | 71.80 | 66.79 | 62.55 | 55.98 | 51.97 | 51.48 | 51.76 | 51.13 | 54.23 | 52.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 52.11 | 52.21 | 53.17 | 52.40 | 51.52 | 52.03 | 50.02 | 48.34 | 44.21 | 50.35 | 52.84 | 51.59 | 50.71 | 48.35 | 41.15 | 41.39 | 36.49 | 38.75 | 45.52 | 43.18 |
| Cash conversion cycle | days | -2.72 | -4.33 | -1.16 | 5.51 | 8.36 | 15.85 | 17.06 | 14.39 | 21.98 | 17.81 | 18.95 | 15.20 | 11.84 | 7.63 | 10.82 | 10.09 | 15.27 | 12.39 | 8.70 | 9.58 |
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 exhibited fluctuations over the past eight quarters. In Q1 2023, the company's cash conversion cycle was at its longest at 32.97 days, indicating that it took the company almost a month to convert its investments in inventory and other resources back into cash.
However, over the subsequent quarters, there was a noticeable improvement in the cash conversion cycle, with Q4 2023 showing the shortest cycle at 18.41 days. This suggests that Owens & Minor, Inc. reduced the time taken to sell inventory, collect receivables, and pay suppliers, resulting in a more efficient cash flow management.
Despite the quarterly fluctuations, it is essential to note that overall, the trend seems to be moving in the right direction towards a more efficient cash conversion cycle. A shorter cycle implies that the company is able to generate cash more quickly and effectively manage its working capital, which could be a positive sign of improved operational efficiency and liquidity management within Owens & Minor, Inc.
Peer comparison
Dec 31, 2023