USANA Health Sciences Inc (USNA)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		6.11	6.49	6.80	7.02	7.09	7.36	7.24	7.03	6.83	7.00	5.65	5.01	5.07	5.25	4.96	4.14	3.10	2.53	2.73	3.10
DOH	days	59.75	56.22	53.65	51.98	51.50	49.62	50.40	51.94	53.48	52.14	64.57	72.82	72.03	69.56	73.58	88.17	117.78	144.55	133.91	117.80

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.11
= 59.75

Days of Inventory on Hand (DOH) is a financial metric used to evaluate the efficiency of a company's inventory management. In the case of USANA Health Sciences Inc, the trend in DOH over the past few years shows fluctuations but an overall improvement in inventory management efficiency.

From March 31, 2020, to September 30, 2022, there was a gradual decrease in DOH from 117.80 days to 52.14 days, indicating that USANA was able to reduce the number of days it took to sell its inventory. This suggests better inventory turnover and potentially lower carrying costs.

However, from September 30, 2022, to December 31, 2024, there was a gradual increase in DOH from 52.14 days to 59.75 days. While the increase is not substantial, it is essential for USANA to monitor this trend to avoid potential issues like overstocking or slowing sales.

Overall, the decreasing trend in DOH from 117.80 days in March 2020 to 59.75 days in December 2024 indicates an improvement in USANA's inventory management efficiency. It is vital for the company to strike a balance between maintaining adequate inventory levels to meet demand and avoiding excess inventory that may tie up cash and increase costs.