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.
Peer comparison
Dec 31, 2023