Option Care Health Inc (OPCH)
Days of inventory on hand (DOH)
| 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 | |
| DOH | days | 35.55 | 30.11 | 26.60 | 25.13 | 24.63 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 10.27
= 35.55
Option Care Health Inc's days of inventory on hand (DOH) has increased steadily over the past five years. In December 31, 2020, the DOH was 24.63 days, and by December 31, 2024, it had risen to 35.55 days. This indicates that the company is holding inventory for longer periods before it is sold.
The increasing trend in DOH suggests that Option Care Health Inc may be facing challenges in managing its inventory levels efficiently. A higher DOH could tie up more capital in inventory, leading to potential liquidity issues and higher carrying costs.
It is important for the company to closely monitor its inventory management practices to optimize holding costs and ensure a balance between meeting customer demand and minimizing excess stock levels. Additionally, a thorough analysis of the underlying factors contributing to the rise in DOH, such as changes in demand patterns or supply chain disruptions, would be beneficial for improving operational efficiency and profitability.
Peer comparison
Dec 31, 2024