Option Care Health Inc (OPCH)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,000,120 | 3,814,131 | 3,631,079 | 3,456,594 | 3,335,885 | 3,239,966 | 3,204,135 | 3,149,812 | 3,077,817 | 2,996,682 | 2,882,734 | 2,780,118 | 2,659,034 | 2,564,988 | 2,483,475 | 2,396,699 | 2,350,346 | 2,274,532 | 2,145,183 | 1,697,519 |
| Inventory | US$ in thousands | 388,131 | 310,599 | 281,421 | 241,948 | 274,004 | 251,366 | 262,924 | 249,643 | 224,281 | 236,020 | 231,766 | 217,184 | 183,095 | 189,830 | 173,853 | 173,622 | 158,601 | 155,478 | 149,115 | 139,128 |
| Inventory turnover | 10.31 | 12.28 | 12.90 | 14.29 | 12.17 | 12.89 | 12.19 | 12.62 | 13.72 | 12.70 | 12.44 | 12.80 | 14.52 | 13.51 | 14.28 | 13.80 | 14.82 | 14.63 | 14.39 | 12.20 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,000,120K ÷ $388,131K
= 10.31
Option Care Health Inc's inventory turnover has fluctuated over the past few years, with the highest turnover occurring in December 2021 at 14.82 and the lowest in December 2024 at 10.31. The company's inventory turnover ratio indicates how effectively it manages its inventory levels. A high turnover ratio suggests that the company is efficiently selling its inventory and replenishing it frequently.
In general, a higher inventory turnover ratio is favorable as it signifies that the company is selling goods quickly and efficiently converting inventory into sales. However, a significant decrease in turnover ratio could indicate overstocking or slowing sales, which may lead to potential liquidity issues or storage costs.
Option Care Health Inc should continue monitoring its inventory turnover ratio to ensure it remains at a healthy level, balancing between meeting customer demand and avoiding excessive inventory levels that could tie up capital and impact profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024