Option Care Health Inc (OPCH)

Liquidity ratios

	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
Current ratio	1.70	1.73	1.77	1.77	1.77	1.79	1.79	1.66	1.76	1.62	1.58	1.59	1.55	1.67	1.60	1.58	1.51	1.56	1.62	1.59
Quick ratio	0.53	0.63	0.56	0.36	0.57	0.63	0.67	0.50	0.54	0.45	0.38	0.29	0.26	0.41	0.34	0.26	0.23	0.32	0.30	0.20
Cash ratio	0.53	0.63	0.56	0.36	0.57	0.63	0.67	0.50	0.54	0.45	0.38	0.29	0.26	0.41	0.34	0.26	0.23	0.32	0.30	0.20

Option Care Health Inc's current ratio has been relatively stable over the past few years, ranging from 1.51 to 1.79. This indicates that the company has a good ability to cover its short-term liabilities with its current assets. The current ratio was at its highest at 1.79 as of June 30, 2023, showing a strong short-term liquidity position at that time.

In contrast, the quick ratio, which excludes inventory from current assets, has shown more variability, ranging from 0.20 to 0.67. This suggests that the company may have a more conservative approach to liquidity management, as the quick ratio tends to be lower than the current ratio. The quick ratio was at its lowest at 0.20 as of March 31, 2020, indicating a potential liquidity challenge at that time.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has also shown variability, ranging from 0.20 to 0.67. This ratio gives a clearer picture of the company's immediate ability to cover its short-term liabilities with cash on hand. The cash ratio was at its highest at 0.67 as of June 30, 2023, showing a strong cash position at that time.

Overall, Option Care Health Inc has maintained a generally healthy liquidity position over the years, with the current and cash ratios indicating a good ability to meet short-term obligations, while the quick ratio reveals a more conservative liquidity management strategy.

Additional liquidity measure

		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
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

Option Care Health Inc's cash conversion cycle has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for the company to convert its resources invested in inventory back into cash from sales.

The trend in the cash conversion cycle for Option Care Health Inc demonstrates a general reduction from the initial 29.92 days on March 31, 2020, to a low of 24.63 days on December 31, 2020. This indicates an improvement in efficiency in managing its working capital during this period.

However, from March 31, 2021, to June 30, 2022, the cash conversion cycle experienced some fluctuation, ranging between 25.55 days to 29.35 days. This fluctuation could indicate challenges in maintaining a consistent flow of cash from operations during these quarters.

In the latter part of 2022 through 2024, the cash conversion cycle saw an overall increase, peaking at 35.42 days on December 31, 2024. This increase suggests that Option Care Health Inc may be facing issues in managing its working capital efficiently or experiencing delays in converting inventory to cash from sales.

Overall, monitoring and managing fluctuations in the cash conversion cycle are crucial for Option Care Health Inc to ensure optimal liquidity and efficient working capital management.