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.
Peer comparison
Dec 31, 2023