OSI Systems Inc (OSIS)

The analysis of OSI Systems Inc.'s number of days of payables over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations indicative of shifts in the company's payment practices and liquidity management.

In 2021, the company maintained an average of approximately 70.92 days before settling its accounts payable obligations. This period decreased significantly by 2022 to approximately 60.23 days, suggesting that OSI Systems Inc. optimized its payment cycle, potentially to improve supplier relationships or improve cash flow management. The slight further reduction in 2023 to approximately 59.84 days indicates continued efficiency or tighter payment policies.

However, the trend reverses notably in 2024, where the average days of payables increase to approximately 69.20 days. This elongation could reflect strategic delayed payments, possible liquidity constraints, or renegotiation of terms with suppliers. The most pronounced change appears by 2025, where the number of days extends markedly to approximately 91.19 days, indicating a significant elongation in the payment cycle. This substantial increase may imply a deliberate shift towards extending payment terms, potential cash flow issues, or changes in supplier relationships and credit policies.

Overall, the data reveals that OSI Systems Inc. has experienced variability in its accounts payable cycle, with periods of efficiency followed by notable extension in recent years, particularly in 2025. The trend toward longer payment periods may carry implications for the company's liquidity position, supplier relations, and overall working capital management.

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Jun 30, 2025