Nu Skin Enterprises Inc (NUS)

Liquidity 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
Current ratio 2.13 1.62 1.78 2.08 2.12 2.13 2.30 1.72 1.65 1.65 1.56 1.60 1.66 1.66 1.62 1.74 2.07 2.01 1.90 1.86
Quick ratio 1.04 0.75 0.72 0.82 0.91 0.97 1.11 0.75 0.75 0.65 0.72 0.75 0.90 0.94 0.93 0.97 1.11 1.04 1.04 0.93
Cash ratio 0.81 0.58 0.57 0.66 0.78 0.84 0.99 0.64 0.67 0.56 0.62 0.65 0.78 0.81 0.80 0.86 0.96 0.89 0.89 0.79

The current ratio of Nu Skin Enterprises, Inc. has shown some fluctuations over the past eight quarters, ranging from 1.62 to 2.30. Overall, the current ratio has generally been above 2, indicating that the company has had more than enough current assets to cover its current liabilities. This suggests a strong ability to meet short-term obligations.

On the other hand, the quick ratio, which excludes inventory from current assets, has displayed more variability, ranging from 0.94 to 1.38. This ratio provides a more conservative measure of liquidity. Despite some fluctuations, the quick ratio has generally remained above 1, indicating that Nu Skin Enterprises, Inc. can meet its short-term obligations without relying heavily on inventory liquidation.

Lastly, the cash ratio, which is the most conservative liquidity ratio, has ranged from 0.77 to 1.26. This ratio reveals the company's ability to cover its current liabilities solely with cash and cash equivalents. The cash ratio has generally been above 1, suggesting that Nu Skin Enterprises, Inc. holds sufficient cash reserves to meet short-term obligations without relying on other current assets.

Overall, Nu Skin Enterprises, Inc. has maintained satisfactory liquidity levels over the past eight quarters, as evidenced by its current, quick, and cash ratios. The company appears to have a solid financial standing in terms of its ability to meet its short-term financial obligations.

Additional liquidity measure

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
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

The cash conversion cycle of Nu Skin Enterprises, Inc. has shown fluctuations over the past eight quarters. In Q2 2023, the company experienced a significant increase in its cash conversion cycle to 211.51 days, indicating that it took longer to convert its investments in inventory and accounts receivable into cash during that period. This was a notable deviation from the trend of the previous quarters where the cash conversion cycle ranged between 154.58 to 202.33 days.

In comparison to Q2 2023, the company managed to improve its cash conversion cycle in Q3 2023 to 156.06 days, suggesting a more efficient management of its working capital. However, this improvement was short-lived as in Q4 2023, the cash conversion cycle increased again to 154.58 days, albeit remaining lower than the Q2 2023 peak.

Overall, Nu Skin Enterprises, Inc. has demonstrated fluctuations in its cash conversion cycle, with efforts to optimize working capital efficiency evident in certain quarters. Continued monitoring and management of the cash conversion cycle will be crucial for the company to ensure timely conversion of investments into cash and maintain a healthy financial position.