Option Care Health Inc (OPCH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,251,080 | 3,890,930 | 3,358,250 | 2,913,300 | 2,305,570 |
| Total current assets | US$ in thousands | 1,094,260 | 994,339 | 710,256 | 657,012 | 558,654 |
| Total current liabilities | US$ in thousands | 618,309 | 565,351 | 459,695 | 434,023 | 330,004 |
| Working capital turnover | 8.93 | 9.07 | 13.40 | 13.06 | 10.08 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,251,080K ÷ ($1,094,260K – $618,309K)
= 8.93
Option Care Health Inc.'s working capital turnover has shown fluctuations over the past five years. The company's working capital turnover ratio was 9.04 in 2023, slightly lower compared to 2022 when it was 9.20. This indicates that for every dollar of working capital, Option Care Health generated $9.04 of revenue in 2023.
In 2021, the working capital turnover ratio was relatively higher at 13.72, indicating that the company efficiently utilized its working capital to generate revenue during that year. This was also the case in 2020 when the ratio was 13.60.
However, in 2019, the working capital turnover ratio declined to 10.10, showing a decrease in efficiency in utilizing working capital to generate revenue compared to the previous years.
Overall, Option Care Health Inc.'s working capital turnover has varied over the past five years, with fluctuations in efficiency in utilizing working capital to generate revenue. It is important for the company to monitor and manage its working capital effectively to optimize this ratio and improve its financial performance.
Peer comparison
Dec 31, 2023