Nu Skin Enterprises Inc (NUS)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,920,558 | 1,959,749 | 1,991,991 | 2,042,271 | 2,129,183 | 2,290,967 | 2,308,710 | 2,418,361 | 2,479,775 | 2,497,690 | 2,550,447 | 2,485,454 | 2,352,193 | 2,223,254 | 2,114,177 | 2,109,183 | 2,253,390 | 2,397,266 | 2,471,861 | 2,543,989 |
| Inventory | US$ in thousands | 279,978 | 291,103 | 372,250 | 366,537 | 346,183 | 327,481 | 354,211 | 381,585 | 399,931 | 415,203 | 390,977 | 363,431 | 314,366 | 270,319 | 261,969 | 257,474 | 275,891 | 282,997 | 292,696 | 304,311 |
| Inventory turnover | 6.86 | 6.73 | 5.35 | 5.57 | 6.15 | 7.00 | 6.52 | 6.34 | 6.20 | 6.02 | 6.52 | 6.84 | 7.48 | 8.22 | 8.07 | 8.19 | 8.17 | 8.47 | 8.45 | 8.36 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,920,558K ÷ $279,978K
= 6.86
Nu Skin Enterprises, Inc.'s inventory turnover has fluctuated over the past eight quarters, ranging from a low of 1.59 in Q2 2023 to a high of 2.19 in Q4 2023. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the company sells and replaces its inventory within a specific period.
A higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which can be a positive sign of strong sales and effective inventory management. Conversely, a lower ratio may suggest slower sales or inefficiencies in managing inventory.
From the data provided, Nu Skin's inventory turnover has generally been above 1.5, indicating that the company is effectively turning over its inventory. However, the fluctuations in the ratio suggest some variability in the company's inventory management efficiency, which may be influenced by factors such as sales trends, seasonality, or supply chain issues.
Overall, Nu Skin Enterprises, Inc. should continue to monitor its inventory turnover closely to ensure optimal inventory management and maximize its operational efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023