Option Care Health Inc (OPCH)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,998,200 | 4,302,320 | 3,944,740 | 3,438,640 | 3,032,610 |
| Total current assets | US$ in thousands | 1,322,630 | 1,094,260 | 994,339 | 710,256 | 657,012 |
| Total current liabilities | US$ in thousands | 780,146 | 618,309 | 565,351 | 459,695 | 434,023 |
| Working capital turnover | 9.21 | 9.04 | 9.20 | 13.72 | 13.60 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,998,200K ÷ ($1,322,630K – $780,146K)
= 9.21
Option Care Health Inc's working capital turnover has shown a fluctuating trend over the past five years. The ratio was consistently high in 2020 and 2021, indicating that the company efficiently utilized its working capital to generate sales. However, there was a significant drop in 2022 and a slight decrease in 2023 and 2024. This decline suggests that the company may be facing challenges in efficiently managing its working capital to support its sales operations.
A declining working capital turnover ratio could indicate inefficiencies in inventory management, accounts receivable collection, or accounts payable management. It may also suggest that the company is not effectively utilizing its current assets to generate revenue.
Overall, Option Care Health Inc should closely monitor its working capital turnover ratio and take necessary actions to improve efficiency in managing its working capital to support its sales growth and maintain financial stability.
Peer comparison
Dec 31, 2024