Option Care Health Inc (OPCH)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 14.46 | 16.39 | 17.57 | 18.19 | 19.70 | |
| DOH | days | 25.24 | 22.26 | 20.77 | 20.06 | 18.52 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.46
= 25.24
Option Care Health Inc.'s Days of Inventory on Hand (DOH) has shown a slight increasing trend over the past five years, indicating that the company is holding inventory for a longer period before it is sold. In the most recent year, as of December 31, 2023, the DOH stood at 30.11 days, marking the highest level in the period under review. This suggests that the company may be facing challenges in managing its inventory efficiently, possibly leading to higher carrying costs and tying up capital in inventory for a longer duration.
While a moderate increase in DOH can sometimes be indicative of stronger inventory management practices or strategic inventory buildup in anticipation of higher demand, a consistent upward trend in this metric might raise concerns about potential inefficiencies in inventory turnover and liquidity management. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of Option Care Health Inc.'s inventory management practices and its overall operational performance.
Peer comparison
Dec 31, 2023