Option Care Health Inc (OPCH)
Payables 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 |
| Payables | US$ in thousands | 426,513 | 378,763 | 279,246 | 282,913 | 221,060 |
| Payables turnover | 9.29 | 9.71 | 11.52 | 10.20 | 10.33 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,962,730K ÷ $426,513K
= 9.29
Option Care Health Inc.'s payables turnover ratio has fluctuated over the past five years. The ratio decreased from 8.13 in 2019 to 8.31 in 2020, indicating a slight decrease in the efficiency of paying off its accounts payable. However, in 2021, there was a notable improvement as the payables turnover ratio increased to 9.52, reflecting better management of payables. This improvement was not sustained, as the ratio decreased to 8.13 in 2022. In 2023, the payables turnover ratio further decreased to 7.79, indicating a potential delay in paying off its accounts payable compared to the previous year. Overall, while the payables turnover ratios have varied, it is important for Option Care Health Inc. to analyze the underlying reasons for these fluctuations and assess their impact on the company's working capital management and relationships with suppliers.
Peer comparison
Dec 31, 2023