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.