USANA Health Sciences Inc (USNA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 7.09 | 6.83 | 5.07 | 5.23 | 2.72 |
| Receivables turnover | 128.30 | 138.88 | 166.16 | 153.34 | 121.08 |
| Payables turnover | 43.25 | 41.44 | 36.88 | 25.92 | 14.97 |
| Working capital turnover | 3.09 | 4.16 | 5.82 | 4.42 | 5.49 |
USANA Health Sciences Inc's activity ratios provide insights into the efficiency of the company's operational activities over the years.
1. Inventory turnover:
USANA's inventory turnover has shown a positive trend over the past five years, indicating that the company is managing its inventory more efficiently. The upward trend signifies that USANA has been able to sell its inventory more frequently each year. A high inventory turnover ratio suggests effective inventory management and faster sales cycles.
2. Receivables turnover:
The receivables turnover ratio of USANA has fluctuated over the years but generally remained at high levels. This indicates that the company is effective in collecting outstanding receivables from customers. A high receivables turnover ratio suggests that USANA has efficient credit policies and good relationships with its customers.
3. Payables turnover:
USANA’s payables turnover has been increasing steadily, indicating that the company is taking longer to pay its suppliers. A higher payables turnover ratio can suggest that USANA is able to negotiate favorable credit terms with its suppliers, allowing for better cash flow management.
4. Working capital turnover:
USANA’s working capital turnover has fluctuated over the years, but generally, it has shown a downward trend. This suggests that the company's ability to generate revenue from its working capital has decreased over time. A high working capital turnover ratio indicates that USANA is utilizing its working capital efficiently to generate sales.
Overall, USANA Health Sciences Inc's activity ratios reflect a mix of positive and negative trends, suggesting areas of strength and areas that may require further improvement in their operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.50 | 53.48 | 72.03 | 69.83 | 134.13 |
| Days of sales outstanding (DSO) | days | 2.84 | 2.63 | 2.20 | 2.38 | 3.01 |
| Number of days of payables | days | 8.44 | 8.81 | 9.90 | 14.08 | 24.38 |
The activity ratios of USANA Health Sciences Inc provide insights into the company's efficiency in managing its inventory, collecting receivables, and paying its payables.
1. Days of Inventory on Hand (DOH):
- The trend of decreasing days of inventory on hand from 2021 to 2023 indicates that USANA has been more efficient in managing its inventory levels.
- A lower DOH signifies that the company is selling its inventory faster and has a more optimal inventory management process in place.
2. Days of Sales Outstanding (DSO):
- The trend of decreasing days of sales outstanding from 2019 to 2021 suggests that USANA has been improving its collection of receivables.
- A lower DSO indicates that the company is collecting payments from its customers more quickly, improving its cash flow and liquidity.
3. Number of Days of Payables:
- The decreasing trend in the days of payables from 2019 to 2023 indicates that USANA has been paying its suppliers more quickly.
- A lower number of days of payables suggests that the company is managing its payables efficiently, potentially maintaining good relationships with suppliers.
Overall, the activity ratios reflect that USANA Health Sciences Inc has shown improvements in managing its inventory, collecting receivables, and paying its payables over the years, which is positive for the company's operational efficiency and financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 9.26 | 10.25 | 11.69 | 11.33 | 11.14 |
| Total asset turnover | 1.46 | 1.68 | 2.06 | 1.78 | 2.05 |
The fixed asset turnover ratio for USANA Health Sciences Inc has been consistently high over the past five years, indicating that the company generates significant sales revenue in relation to its investment in fixed assets. The trend shows a slight decrease from 11.14 in 2019 to 9.26 in 2023, suggesting a potential decrease in the efficiency of utilizing fixed assets to generate sales in the most recent period.
In terms of total asset turnover, USANA Health Sciences Inc has also exhibited a declining trend, with the ratio decreasing from 2.05 in 2019 to 1.46 in 2023. This indicates that the company is generating less revenue relative to its total assets. A lower total asset turnover ratio may suggest that the company is less efficient in utilizing its total assets to generate sales compared to previous years.
Overall, the declining trends in both fixed asset turnover and total asset turnover ratios may indicate potential inefficiencies in the company's asset utilization and sales generation processes. Further analysis is recommended to understand the underlying reasons for these changes and to identify areas for improvement in operational efficiency.