Nu Skin Enterprises Inc (NUS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 26.68 | 25.77 | 30.22 | 34.83 | 46.68 | 49.26 | 56.50 | 50.10 | 65.07 | 52.69 | 43.67 | 45.08 | 40.54 | 40.02 | 35.53 | 52.24 | 47.78 | 44.31 | 41.94 | 46.40 |
| Payables turnover | 44.15 | 40.34 | 40.22 | 41.26 | 39.46 | 55.04 | 41.97 | 59.39 | 49.60 | 48.01 | 42.06 | 37.05 | 35.55 | 40.20 | 40.93 | 52.87 | 57.81 | 60.84 | 50.91 | 48.67 |
| Working capital turnover | 5.21 | 7.45 | 5.84 | 5.21 | 5.52 | 5.73 | 4.95 | 7.37 | 7.83 | 7.89 | 8.18 | 8.05 | 7.13 | 7.85 | 7.59 | 7.42 | 6.28 | 6.73 | 6.91 | 7.70 |
The activity ratios of Nu Skin Enterprises, Inc. provide insights into the company's efficiency in managing its resources.
1. Inventory turnover:
The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. Nu Skin's inventory turnover ratio fluctuated over the quarters, ranging from 1.59 to 2.19. This suggests that the company might have faced challenges in efficiently managing its inventory levels consistently.
2. Receivables turnover:
The receivables turnover ratio indicates how efficiently a company collects cash from its credit sales. Nu Skin's receivables turnover improved consistently from Q1 2022 to Q3 2023, reaching a peak of 56.76 before slightly declining in Q4 2023. This improvement suggests that the company was effective in collecting payments from its customers.
3. Payables turnover:
The payables turnover ratio reflects how quickly a company pays its suppliers. Nu Skin's payables turnover ratio fluctuated over the quarters, with a range from 11.68 to 16.36. The fluctuations indicate variations in the company's payment practices to its suppliers.
4. Working capital turnover:
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Nu Skin's working capital turnover varied between 4.97 and 7.50 over the quarters. The higher turnover ratios indicate that Nu Skin effectively utilized its working capital to generate sales during these periods.
Overall, analyzing these activity ratios collectively provides a comprehensive understanding of Nu Skin Enterprises, Inc.'s operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 53.21 | 54.22 | 68.21 | 65.51 | 59.35 | 52.17 | 56.00 | 57.59 | 58.87 | 60.68 | 55.95 | 53.37 | 48.78 | 44.38 | 45.23 | 44.56 | 44.69 | 43.09 | 43.22 | 43.66 |
| Days of sales outstanding (DSO) | days | 13.68 | 14.16 | 12.08 | 10.48 | 7.82 | 7.41 | 6.46 | 7.28 | 5.61 | 6.93 | 8.36 | 8.10 | 9.00 | 9.12 | 10.27 | 6.99 | 7.64 | 8.24 | 8.70 | 7.87 |
| Number of days of payables | days | 8.27 | 9.05 | 9.08 | 8.85 | 9.25 | 6.63 | 8.70 | 6.15 | 7.36 | 7.60 | 8.68 | 9.85 | 10.27 | 9.08 | 8.92 | 6.90 | 6.31 | 6.00 | 7.17 | 7.50 |
Days of Inventory on Hand (DOH) measures how many days it takes for a company to convert its inventory into sales. Nu Skin Enterprises, Inc. had a decreasing trend in DOH from Q2 2023 to Q4 2023, indicating an improvement in inventory management efficiency over the period.
Days of Sales Outstanding (DSO) measures how long it takes for a company to collect revenue after a sale is made. Nu Skin's DSO increased from Q1 2023 to Q4 2023, reflecting a lengthening time for collecting sales revenue.
Number of Days of Payables indicates the number of days the company takes to pay its suppliers. Nu Skin saw fluctuations in this ratio over the quarters, with an increasing trend from Q1 2022 to Q2 2023, suggesting a potential strain on liquidity and cash flow.
Overall, looking at these activity ratios, Nu Skin Enterprises, Inc. has shown improvements in inventory management efficiency but has experienced challenges in collecting sales revenue and managing payables effectively.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.49 | 4.64 | 4.72 | 4.77 | 4.97 | 5.46 | 5.57 | 5.82 | 5.92 | 5.95 | 5.96 | 5.89 | 5.49 | 5.27 | 5.14 | 5.11 | 5.31 | 5.58 | 5.83 | 5.98 |
| Total asset turnover | 1.08 | 1.11 | 1.07 | 1.15 | 1.21 | 1.34 | 1.30 | 1.38 | 1.41 | 1.40 | 1.38 | 1.40 | 1.31 | 1.32 | 1.27 | 1.32 | 1.36 | 1.44 | 1.44 | 1.52 |
Nu Skin Enterprises, Inc.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide valuable insights into its operational efficiency and asset utilization.
1. Fixed Asset Turnover:
- Nu Skin's fixed asset turnover ratio has shown a declining trend over the past four quarters, dropping from 5.85 in Q1 2022 to 4.55 in Q4 2023. This indicates that the company is generating less revenue per dollar invested in fixed assets.
- Despite the decline, the fixed asset turnover remains relatively high, suggesting that Nu Skin is efficiently utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio generally indicates better efficiency in asset utilization.
2. Total Asset Turnover:
- The total asset turnover ratio of Nu Skin has fluctuated throughout the quarters, with a peak of 1.39 in Q1 2022 and a low of 1.08 in Q2 2023. This ratio measures the efficiency of the company in generating sales revenue relative to its total assets.
- The overall trend shows a decrease in total asset turnover, indicating that Nu Skin may be experiencing challenges in maximizing sales in proportion to its total asset base.
In conclusion, while Nu Skin Enterprises, Inc. demonstrates efficient utilization of fixed assets based on the fixed asset turnover ratio, the fluctuating trend in total asset turnover suggests a need for the company to potentially streamline its operations to generate more revenue per unit of total assets.