USANA Health Sciences Inc (USNA)
Days of inventory on hand (DOH)
| 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 | |
| DOH | days | 51.50 | 53.48 | 72.03 | 69.83 | 134.13 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.09
= 51.50
The days of inventory on hand (DOH) for USANA Health Sciences Inc have shown a declining trend over the past five years. In 2019, the company had a relatively high DOH of 134.13 days, indicating that it took a long time to sell its inventory. However, there has been a steady improvement in inventory management since then, with DOH decreasing to 69.83 days in 2020 and further 72.03 days in 2021. This downward trend continued in 2022 with DOH decreasing to 53.48 days and reaching its lowest point at 51.50 days by the end of 2023.
The decreasing trend in DOH suggests that USANA Health Sciences Inc has been more efficient in managing its inventory levels, which can lead to cost savings and improved cash flow. The company's ability to reduce the number of days it holds inventory can also indicate better demand forecasting, inventory control, and overall operational efficiency. This trend bodes well for the company's financial health and future performance.