Option Care Health Inc (OPCH)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,962,726 | 3,881,859 | 3,829,631 | 3,763,731 | 3,676,839 | 3,583,230 | 3,461,400 | 3,351,554 | 3,217,741 | 3,111,319 | 3,019,073 | 2,922,758 | 2,885,745 | 2,830,743 | 2,710,569 | 2,129,187 | 1,564,988 | 988,684 | 484,653 | 473,621 |
| Payables | US$ in thousands | 426,513 | 429,536 | 467,666 | 448,890 | 378,763 | 409,737 | 380,516 | 356,118 | 279,246 | 318,561 | 309,445 | 290,939 | 282,913 | 290,206 | 260,120 | 265,703 | 221,060 | 213,149 | 73,367 | 77,458 |
| Payables turnover | 9.29 | 9.04 | 8.19 | 8.38 | 9.71 | 8.75 | 9.10 | 9.41 | 11.52 | 9.77 | 9.76 | 10.05 | 10.20 | 9.75 | 10.42 | 8.01 | 7.08 | 4.64 | 6.61 | 6.11 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,962,726K ÷ $426,513K
= 9.29
Option Care Health Inc.'s payables turnover ratio has been relatively stable over the past eight quarters, ranging from a low of 6.85 in Q2 2023 to a high of 8.13 in Q4 2022. The average payables turnover ratio over this period is around 7.58, indicating that, on average, the company takes approximately 7.58 times to pay off its accounts payable balance annually.
A high payables turnover ratio typically suggests that the company is efficiently managing its accounts payable by paying off its obligations quickly. This may indicate strong relationships with suppliers or effective working capital management practices. However, an excessively high ratio could also imply that the company is not taking full advantage of available trade credit terms, potentially straining its cash flow.
On the other hand, a low payables turnover ratio could indicate that the company is taking longer to pay its suppliers, which could strain relationships or even signal potential liquidity issues. It is essential to analyze the trend in payables turnover over time and compare it to industry benchmarks to gain a better understanding of Option Care Health Inc.'s cash management efficiency and financial health.
Peer comparison
Dec 31, 2023