Option Care Health Inc (OPCH)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 14.46 15.44 14.57 15.08 16.39 15.18 14.93 15.43 17.57 16.39 17.37 16.83 18.19 18.21 18.18 15.30 13.51 9.05 17.43 17.24
Receivables turnover 9.11 10.84 10.28 10.09 8.12 10.41 10.09 9.65 8.03 9.14 9.26 9.26 7.24 8.93 8.50 6.65 4.54 3.85 7.65 7.39
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
Working capital turnover 8.93 8.43 7.70 9.71 9.07 10.38 11.37 11.88 13.40 9.99 11.34 12.26 13.22 11.77 11.21 10.09 7.80 5.75 14.70 16.08

Option Care Health Inc.'s activity ratios provide insight into how efficiently the company is managing its assets and liabilities in generating revenue.

1. Inventory Turnover: The company's inventory turnover has been relatively stable over the past quarters, ranging from 12.12 to 13.72. This indicates that Option Care Health is effectively managing its inventory levels and converting them into sales multiple times within a year.

2. Receivables Turnover: Option Care Health's receivables turnover has shown a slight decreasing trend from Q1 2022 to Q4 2023, fluctuating between 9.82 and 11.39. A lower turnover implies that it takes the company longer to collect its accounts receivable, which may impact its cash flow and liquidity.

3. Payables Turnover: The payables turnover ratio has also been decreasing over the quarters, indicating that Option Care Health is taking more time to pay off its suppliers. However, the ratio has been relatively stable, ranging from 6.85 to 8.13. This could be a strategic move to manage cash flows effectively.

4. Working Capital Turnover: The working capital turnover ratio shows a declining trend from Q1 2022 to Q4 2023, ranging from 7.80 to 12.08. A lower turnover indicates that the company is less efficient in utilizing its working capital to generate revenue. This may signal inefficiencies in managing assets and liabilities.

Overall, while Option Care Health Inc. has maintained stable inventory turnover and payables turnover ratios, there are slight decreases in receivables turnover and working capital turnover ratios, suggesting potential areas for improvement in managing accounts receivable and working capital efficiently.

Average number of days

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
Days of inventory on hand (DOH) days 25.24 23.64 25.06 24.21 22.26 24.04 24.44 23.65 20.77 22.27 21.02 21.68 20.06 20.05 20.08 23.85 27.03 40.33 20.94 21.17
Days of sales outstanding (DSO) days 40.08 33.67 35.50 36.16 44.94 35.07 36.18 37.83 45.47 39.93 39.41 39.43 50.43 40.89 42.92 54.89 80.41 94.71 47.70 49.42
Number of days of payables days 39.29 40.39 44.57 43.53 37.60 41.74 40.12 38.78 31.68 37.37 37.41 36.33 35.78 37.42 35.03 45.55 51.56 78.69 55.25 59.69

Days of inventory on hand (DOH) measures how many days it takes for a company to turn its inventory into sales. Option Care Health Inc. has shown a slight increase in its DOH over the past two quarters, moving from 26.60 days in Q4 2022 to 30.11 days in Q4 2023. This indicates that the company is holding onto inventory for slightly longer periods, which may tie up working capital.

Days of sales outstanding (DSO) represents the average number of days it takes for a company to collect revenue after a sale is made. Option Care Health Inc. has seen a fluctuating trend in its DSO over the past few quarters, with a peak of 37.19 days in Q1 2022 and a low of 32.04 days in Q4 2023. The decreasing trend suggests an improvement in the company's collection process efficiency.

Number of days of payables measures how long it takes for a company to pay its suppliers. Option Care Health Inc. has experienced some variability in its payables days, with the highest number of days at 53.27 in Q2 2023 and the lowest at 44.92 in Q4 2022. This indicates that the company is taking longer to settle its payables at times, potentially affecting its relationships with suppliers.

Overall, Option Care Health Inc. should focus on managing its inventory levels effectively to avoid overstocking, continue to improve its collection process efficiency to reduce DSO, and ensure timely payment to suppliers to maintain healthy relationships and cash flow management.

Long-term

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
Fixed asset turnover 35.24 38.45 38.18 37.79 35.92 39.36 34.78 32.41 30.11 30.44 28.30 25.78 24.34 25.35 23.15 17.83 13.40 9.82 33.34 32.10
Total asset turnover 1.32 1.28 1.23 1.27 1.25 1.23 1.23 1.23 1.20 1.17 1.15 1.14 1.11 1.07 1.04 0.86 0.69 0.50 1.50 1.49

Option Care Health Inc.'s fixed asset turnover ratio has shown a consistent upward trend over the past eight quarters, indicating that the company is generating more revenue relative to its investment in fixed assets. This implies efficient utilization of these assets to generate sales. The ratio ranged from 32.96 to 39.92, with the highest value of 39.92 in Q3 2022, suggesting that the company was able to generate $39.92 in sales for every dollar invested in fixed assets during that quarter.

In comparison, the total asset turnover ratio has been relatively stable, fluctuating around 1.25 to 1.34 over the same period. This ratio measures the company's ability to generate sales from all its assets, including fixed and current assets. A total asset turnover ratio of 1.34 in Q4 2023 indicates that the company generated $1.34 in sales for every dollar of total assets during that quarter.

Overall, both ratios suggest that Option Care Health Inc. is effectively utilizing its assets to generate revenue. The increasing trend in fixed asset turnover indicates improved efficiency in utilizing fixed assets, while the stable total asset turnover ratio suggests consistent overall asset management efficiency.