Option Care Health Inc (OPCH)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.42 + — – —
= 35.42
The cash conversion cycle of Option Care Health Inc has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The trend in Option Care Health Inc's cash conversion cycle shows some variability, with fluctuations in the range of days. The company maintained a relatively stable cycle in the range of 24 to 29 days for most of the periods analyzed, indicating efficient management of its working capital. However, there were some periods where the cycle extended beyond 30 days, possibly indicating delays in converting investments into cash.
The highest cash conversion cycle was recorded on December 31, 2024, at 35.42 days, suggesting a potential inefficiency in managing the balance between inventory levels, accounts receivable, and accounts payable. It would be important for Option Care Health Inc to closely monitor and manage its working capital components to improve cash conversion efficiency and ensure liquidity in the business operations.
Peer comparison
Dec 31, 2024