Owens & Minor Inc (OMI)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.93 | 52.80 | 52.99 | 50.13 | 49.38 | 47.88 | 52.02 | 57.90 | 59.88 | 67.88 | 67.08 | 62.73 | 66.01 | 68.16 | 71.80 | 66.79 | 62.55 | 55.98 | 51.80 | 51.15 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 47.93 | 52.80 | 52.99 | 50.13 | 49.38 | 47.88 | 52.02 | 57.90 | 59.88 | 67.88 | 67.08 | 62.73 | 66.01 | 68.16 | 71.80 | 66.79 | 62.55 | 55.98 | 51.80 | 51.15 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.93 + — – —
= 47.93
Owens & Minor Inc's cash conversion cycle has fluctuated over the years based on the provided data. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory back into cash. A shorter cash conversion cycle is generally preferred as it indicates efficient management of working capital.
From March 31, 2020, to December 31, 2024, Owens & Minor Inc's cash conversion cycle ranged from a low of 47.88 days to a high of 71.80 days. A downward trend is observed in the initial years, indicating improved efficiency in managing inventory and collecting receivables. However, there was a slight uptick in the cycle in mid-2021 before stabilizing in the range of 47-67 days through 2024.
It is important for Owens & Minor Inc to analyze the reasons for any prolonged cash conversion cycles to identify areas of improvement in inventory management, accounts receivable collection, and accounts payable management. Overall, monitoring and managing the cash conversion cycle is crucial for effective working capital management and financial performance.
Peer comparison
Dec 31, 2024