Nu Skin Enterprises Inc (NUS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,941,710 | 2,203,880 | 2,670,250 | 2,570,960 | 2,403,130 |
| Total current assets | US$ in thousands | 701,871 | 759,868 | 872,950 | 903,198 | 740,166 |
| Total current liabilities | US$ in thousands | 328,871 | 359,243 | 529,694 | 542,856 | 356,760 |
| Working capital turnover | 5.21 | 5.50 | 7.78 | 7.13 | 6.27 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,941,710K ÷ ($701,871K – $328,871K)
= 5.21
The working capital turnover ratio of Nu Skin Enterprises, Inc. has exhibited a decreasing trend over the past five years, indicating a decline in the efficiency of the company in utilizing its working capital to generate sales revenue. In 2021, the ratio was at its peak at 7.85, signifying that the company was able to generate $7.85 in sales for every dollar of working capital invested. However, this efficiency dropped in the following years.
Although the ratio decreased to 5.28 in 2023, it remains relatively healthy and suggests that the company is still effectively utilizing its working capital to generate revenue. It is essential for Nu Skin Enterprises to continue monitoring and managing its working capital efficiently to ensure optimal performance and sustainable growth in the future.
Peer comparison
Dec 31, 2023