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.