USANA Health Sciences Inc (USNA)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 104.20 | 128.30 | 138.88 | 166.16 | 153.34 | |
| DSO | days | 3.50 | 2.84 | 2.63 | 2.20 | 2.38 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 104.20
= 3.50
Based on the provided data, USANA Health Sciences Inc has shown a consistent trend in its Days of Sales Outstanding (DSO) from December 31, 2020, to December 31, 2024.
The company had a DSO of 2.38 days on December 31, 2020. This decreased to 2.20 days on December 31, 2021, indicating a more efficient collection of accounts receivable. However, there was a slight increase in DSO to 2.63 days by December 31, 2022, and further to 2.84 days by December 31, 2023, suggesting a potential delay in collecting receivables during these periods.
By December 31, 2024, the DSO increased more significantly to 3.50 days, indicating that it took the company longer to convert its accounts receivable into cash. This may be a cause for concern as an increasing DSO could potentially signal issues with credit policies, collection processes, or customer payment behaviors.
Overall, while the DSO of USANA Health Sciences Inc was relatively low in the beginning, the trend of increasing DSO in recent years suggests a need for the company to focus on improving its accounts receivable management to ensure timely collection and cash flow efficiency.