Option Care Health Inc (OPCH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.31 | 12.28 | 12.90 | 14.29 | 12.17 | 12.89 | 12.19 | 12.62 | 13.72 | 12.70 | 12.44 | 12.80 | 14.52 | 13.51 | 14.28 | 13.80 | 14.82 | 14.63 | 14.39 | 12.20 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 9.21 | 8.56 | 8.63 | 9.00 | 9.04 | 8.54 | 7.80 | 9.84 | 9.20 | 10.53 | 11.55 | 12.08 | 13.72 | 10.19 | 11.60 | 12.62 | 13.60 | 12.12 | 11.46 | 10.05 |
Option Care Health Inc's inventory turnover has remained relatively stable over the past few years, ranging between 12.17 to 14.82 times. This indicates that the company efficiently manages its inventory levels, with higher turnover ratios suggesting faster inventory conversion into sales.
However, information on receivables and payables turnover is not available, making it challenging to assess the efficiency of the company in collecting outstanding receivables from customers or managing its payments to suppliers.
In terms of working capital turnover, there is a downward trend observed from March 2020 to December 2024, indicating a reduction in the company's ability to generate sales revenue relative to its working capital investment. A decrease in this ratio may suggest inefficiency in utilizing working capital resources to drive sales growth.
Overall, while Option Care Health Inc demonstrates effective inventory management based on the inventory turnover ratios, further information on receivables and payables turnover is needed to provide a comprehensive analysis of the company's activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.42 | 29.72 | 28.29 | 25.55 | 29.98 | 28.32 | 29.95 | 28.93 | 26.60 | 28.75 | 29.35 | 28.51 | 25.13 | 27.01 | 25.55 | 26.44 | 24.63 | 24.95 | 25.37 | 29.92 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the data provided for Option Care Health Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The DOH measures the number of days it takes for the company to sell its inventory.
- Option Care Health Inc's DOH has varied over the period, ranging from a low of 24.63 days to a high of 35.42 days.
- A decrease in DOH from 2020 to 2023 indicates more efficient inventory management.
- However, there was a slight increase in DOH in 2024 to 35.42 days, which suggests a possible buildup of inventory.
2. Days of Sales Outstanding (DSO):
- DSO is not available in the data provided, which indicates that the company might not have accounts receivable or the data was not disclosed.
- Without DSO information, it is challenging to assess how quickly the company collects its outstanding sales.
3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is not available, indicating a lack of information on how long the company takes to pay its suppliers.
- Understanding the payables turnover is crucial for evaluating the company's liquidity and supplier relationships.
In conclusion, based on the available data, Option Care Health Inc's inventory management seems to have improved over the years, but further analysis of sales outstanding and payables turnover is needed to get a comprehensive view of the company's operating efficiency and liquidity management.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 38.71 | 38.31 | 36.42 | 39.92 | 35.32 | 32.96 | 30.83 | 31.05 | 17.88 | 26.54 | 25.03 | 16.08 | 23.66 | 17.76 |
| Total asset turnover | 1.46 | 1.39 | 1.37 | 1.36 | 1.29 | 1.30 | 1.24 | 1.29 | 1.27 | 1.25 | 1.24 | 1.25 | 1.23 | 1.19 | 1.18 | 1.17 | 1.15 | 1.10 | 1.06 | 0.85 |
Option Care Health Inc has shown a consistent improvement in its fixed asset turnover ratio over the reported periods. The ratio increased steadily from 17.76 in March 2020 to 38.71 in June 2023, indicating that the company has been generating more revenue relative to its investment in fixed assets. However, the ratio remained constant at 38.71 in the following periods, as no data was available for the subsequent years.
In terms of total asset turnover, the company also exhibited a positive trend with the ratio increasing from 0.85 in March 2020 to 1.37 in June 2024. This suggests that Option Care Health has been able to efficiently utilize its total assets to generate sales, reflecting strong operational efficiency and management of its asset base. The continuous increase in this ratio demonstrates the company's ability to optimize its asset utilization for revenue generation.
Overall, the trends in both fixed asset turnover and total asset turnover ratios reflect favorably on Option Care Health's operational efficiency and asset management, indicating a potentially healthy long-term performance and financial stability.