USANA Health Sciences Inc (USNA)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 856,858 | 923,915 | 1,001,720 | 1,190,170 | 1,137,750 |
| Property, plant and equipment | US$ in thousands | 94,565 | 99,814 | 97,773 | 101,780 | 100,445 |
| Fixed asset turnover | 9.06 | 9.26 | 10.25 | 11.69 | 11.33 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $856,858K ÷ $94,565K
= 9.06
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.
Based on the data provided, USANA Health Sciences Inc's fixed asset turnover has shown a decreasing trend over the years. The ratio was 11.33 in December 2020, increased to 11.69 in December 2021, but then declined to 10.25 in December 2022, further dropping to 9.26 in December 2023, and finally decreasing to 9.06 in December 2024.
The decreasing trend in the fixed asset turnover ratio may indicate that the company's sales are not increasing proportionally with its investment in fixed assets. This could suggest inefficiencies in asset utilization or potential overinvestment in fixed assets relative to sales generated.
USANA Health Sciences Inc may need to review its asset management strategies to improve the efficiency of utilizing its fixed assets to generate revenue effectively. Further analysis and comparison with industry benchmarks may provide insights into potential areas for improvement.