USANA Health Sciences Inc (USNA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 128.30 | 138.88 | 166.16 | 153.34 | 121.08 | |
| DSO | days | 2.84 | 2.63 | 2.20 | 2.38 | 3.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 128.30
= 2.84
Days of Sales Outstanding (DSO) is a measure of how efficient a company is in collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly.
Looking at the trend of USANA Health Sciences Inc's DSO over the past five years, we observe a relatively stable and decreasing trend. In 2019, the DSO was 3.01 days, which decreased to 2.84 days in 2023. The trend indicates an improvement in the company's ability to collect payments from customers in a timely manner.
The decrease in DSO over the years could suggest that USANA Health Sciences Inc has been effectively managing its accounts receivable and collecting payments promptly. A lower DSO is generally favorable as it indicates the company's ability to convert sales into cash efficiently.
Overall, the decreasing trend in USANA Health Sciences Inc's DSO reflects positively on the company's financial management and cash flow efficiency. It suggests that the company has been successful in maintaining strong customer relationships and ensuring timely payments, which is essential for sustainable growth and financial stability.