Nu Skin Enterprises Inc (NUS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,920,560 | 2,129,180 | 2,479,780 | 2,352,190 | 2,182,690 |
| Inventory | US$ in thousands | 279,978 | 346,183 | 399,931 | 314,366 | 275,891 |
| Inventory turnover | 6.86 | 6.15 | 6.20 | 7.48 | 7.91 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,920,560K ÷ $279,978K
= 6.86
The inventory turnover ratio of Nu Skin Enterprises, Inc. has fluctuated over the past five years. In 2023, the inventory turnover ratio improved to 2.19 compared to 1.82 in 2022, indicating that the company was able to sell and replace its inventory more frequently during the year. This could suggest effective inventory management or an increase in sales relative to the level of inventory held.
However, it's worth noting that the inventory turnover ratio was higher in 2020 and 2019 at 2.09 and 2.11, respectively, compared to 2023. This implies that in those years, the company was more efficient in turning over its inventory. Conversely, in 2021, the inventory turnover ratio was lower at 1.69, indicating a slower rate of inventory turnover, which may reflect excess inventory levels or challenges in selling inventory.
Overall, a higher inventory turnover ratio is generally preferred as it signifies that a company is selling its inventory quickly. Nu Skin Enterprises, Inc. should continue to monitor and potentially optimize its inventory management processes to ensure efficient use of resources and maximize sales opportunities.
Peer comparison
Dec 31, 2023