Option Care Health Inc (OPCH)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,962,730	3,676,840	3,217,640	2,885,640	2,283,150
Inventory	US$ in thousands	274,004	224,281	183,095	158,601	115,876
Inventory turnover		14.46	16.39	17.57	18.19	19.70

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,962,730K ÷ $274,004K
= 14.46

Option Care Health Inc.'s inventory turnover has been declining over the past five years, from 15.51 in 2019 to 12.12 in 2023. This indicates that the company is taking longer to sell its inventory, which may suggest inefficiencies in managing inventory levels or slower sales. A decreasing trend in inventory turnover could potentially signal overstocking of inventory, obsolescence issues, or changing consumer demand patterns affecting sales. It is important for the company to closely monitor and analyze its inventory management practices to optimize efficiency and improve overall financial performance.