USANA Health Sciences Inc (USNA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 923,915 | 1,001,720 | 1,190,170 | 1,137,750 | 1,060,900 |
| Property, plant and equipment | US$ in thousands | 99,814 | 97,773 | 101,780 | 100,445 | 95,233 |
| Fixed asset turnover | 9.26 | 10.25 | 11.69 | 11.33 | 11.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $923,915K ÷ $99,814K
= 9.26
The fixed asset turnover ratio measures the efficiency with which a company generates revenue from its investment in long-term assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Analyzing the data provided, we observe a downward trend in USANA Health Sciences Inc's fixed asset turnover ratio over the past five years. The ratio has declined from 11.14 in 2019 to 9.26 in 2023. This suggests that the company's ability to generate sales revenue from its fixed assets has decreased over the period.
A decreasing fixed asset turnover ratio may indicate that the company is not efficiently utilizing its fixed assets to generate revenue, or it may reflect a decrease in sales relative to the level of fixed assets. It could also signal that the company has been investing heavily in fixed assets without corresponding growth in revenue.
Overall, USANA Health Sciences Inc's declining fixed asset turnover ratio warrants further investigation to understand the reasons behind this trend and to assess the company's asset utilization efficiency and operational performance. Additional financial and operational analysis would be necessary to uncover the factors driving this downward trend and to determine the implications for the company's financial health and long-term sustainability.