Option Care Health Inc (OPCH)

Working capital 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
Revenue (ttm)	US$ in thousands	4,251,080	4,151,540	4,077,230	3,989,405	3,890,933	3,790,437	3,659,454	3,534,435	3,358,250	3,251,039	3,132,128	2,998,508	2,948,508	2,864,574	2,723,428	2,242,266	1,784,399	1,296,066	903,482	892,334
Total current assets	US$ in thousands	1,094,260	1,116,280	1,198,220	1,029,540	994,339	951,964	877,139	805,712	710,256	811,184	735,764	664,734	657,012	676,475	637,543	601,272	558,654	545,246	177,640	171,085
Total current liabilities	US$ in thousands	618,309	624,084	668,467	618,566	565,351	586,800	555,308	508,139	459,695	485,664	459,516	420,164	434,023	433,173	394,611	379,023	330,004	319,668	116,165	115,588
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (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 fluctuated over the past eight quarters, ranging from a low of 7.80 in Q2 2023 to a high of 12.08 in Q1 2022. The working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is able to generate more revenue with the working capital it has.

The trend in Option Care Health Inc.'s working capital turnover over the quarters shows a general decrease from Q1 2022 to Q2 2023, before experiencing a slight increase in Q4 2023. This may suggest that the company's efficiency in utilizing its working capital has been declining, but there was a slight improvement in the most recent quarter.

It is important for the company to monitor and manage its working capital turnover to ensure that it is optimizing its resources effectively. A lower working capital turnover may indicate that the company is inefficient in utilizing its working capital, while a very high ratio may suggest aggressive management of working capital that could lead to liquidity issues.

Overall, Option Care Health Inc. should continue to analyze its working capital turnover in conjunction with other financial metrics to assess its operational efficiency and financial health.