Nu Skin Enterprises Inc (NUS)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 58.62 | 59.33 | 71.21 | 67.14 | 57.91 | 52.95 | 53.76 | 58.73 | 57.12 | 60.00 | 55.63 | 51.62 | 47.52 | 44.42 | 46.58 | 44.64 | 46.01 | 45.33 | 44.75 | 44.03 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 53.21 + 13.68 – 8.27
= 58.62
The cash conversion cycle of Nu Skin Enterprises, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle decreased to 154.58 days compared to the previous quarter's 156.06 days. This indicates an improvement in the company's efficiency in converting its resources into cash during the quarter. However, the Q4 2023 cash conversion cycle is still higher than the levels seen in the earlier quarters of 2023.
Looking at the trend over the past year, the company's cash conversion cycle peaked in Q2 2023 at 211.51 days and has shown some improvement since then. Despite this, the cycle remains relatively high compared to earlier periods, such as Q3 and Q4 of 2022.
Overall, Nu Skin Enterprises, Inc. has experienced fluctuations in its cash conversion cycle, with some quarters showing improvements while others have shown increased days. The company should continue to monitor and work towards reducing its cash conversion cycle to enhance its financial efficiency and liquidity management.
Peer comparison
Dec 31, 2023