Option Care Health Inc (OPCH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.27 | 12.12 | 13.72 | 14.52 | 14.82 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 9.21 | 9.04 | 9.20 | 13.72 | 13.60 |
Option Care Health Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities to generate sales.
1. Inventory Turnover: Option Care Health Inc's inventory turnover has been steadily decreasing from 14.82 in 2020 to 10.27 in 2024. This indicates that the company is selling its inventory less frequently over the years, which could lead to increased carrying costs or potential obsolescence of inventory.
2. Receivables Turnover: The data shows that receivables turnover figures are not provided for the years 2020 to 2024. This could suggest that the company may not disclose this information or that there are no accounts receivable in the company's operations.
3. Payables Turnover: Similar to receivables turnover, payables turnover information is not available for the years 2020 to 2024. This lack of data could indicate that the company does not provide details on how quickly it pays its suppliers.
4. Working Capital Turnover: The working capital turnover has shown a declining trend from 13.60 in 2020 to 9.21 in 2024. A decreasing working capital turnover could imply that the company is becoming less efficient in utilizing its working capital to support its revenue generation activities.
In conclusion, Option Care Health Inc's activity ratios highlight potential areas for improvement in managing inventory, working capital, and possibly a need for more transparency in reporting receivables and payables turnover. Monitoring these ratios over time can help the company assess and enhance its operational efficiency and effectiveness.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.55 | 30.11 | 26.60 | 25.13 | 24.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Option Care Health Inc's Days of Inventory on Hand (DOH) has increased steadily over the years, from 24.63 days as of December 31, 2020, to 35.55 days as of December 31, 2024. This indicates a longer period that inventory is held before being sold, which may suggest potential inefficiencies in managing inventory levels.
However, the Days of Sales Outstanding (DSO) and the Number of Days of Payables data are not provided, making it challenging to assess the efficiency of the company in collecting receivables and managing payables. Without this information, a complete analysis of Option Care Health Inc's activity ratios is not possible.
In conclusion, the increasing trend in Days of Inventory on Hand (DOH) warrants attention, but a more comprehensive analysis incorporating all relevant activity ratios is needed to provide a holistic view of the company's operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 36.42 | 30.83 | 25.03 |
| Total asset turnover | 1.46 | 1.34 | 1.27 | 1.23 | 1.15 |
Option Care Health Inc's long-term activity ratios indicate the efficiency with which the company is utilizing its assets to generate revenue.
The Fixed Asset Turnover ratio has been improving steadily over the years, increasing from 25.03 in 2020 to 36.42 in 2023. This suggests that the company is generating more revenue per dollar invested in fixed assets, indicating an efficient utilization of its long-term assets.
Similarly, the Total Asset Turnover ratio has also shown positive growth, rising from 1.15 in 2020 to 1.46 in 2024. This indicates that Option Care Health Inc is effectively generating sales in relation to its total assets, reflecting strong operational efficiency and asset management.
Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios demonstrates Option Care Health Inc's ability to efficiently utilize its assets to generate revenue and indicates a positive long-term outlook for the company's operational performance.