USANA Health Sciences Inc (USNA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 435,517 | 457,917 | 498,187 | 471,623 | 187,503 |
| Inventory | US$ in thousands | 61,454 | 67,089 | 98,318 | 90,224 | 68,905 |
| Inventory turnover | 7.09 | 6.83 | 5.07 | 5.23 | 2.72 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $435,517K ÷ $61,454K
= 7.09
The inventory turnover ratio of USANA Health Sciences Inc has shown an upward trend over the past five years, indicating that the company has been more efficient in managing its inventory. The ratio has increased from 2.72 in 2019 to 7.09 in 2023, which signifies that the company is selling its inventory at a faster rate in the most recent period.
A higher inventory turnover ratio is generally a positive sign as it suggests that the company is selling goods quickly and efficiently, minimizing the risk of excess or obsolete inventory. This can lead to improved cash flow and profitability for the company.
USANA Health Sciences Inc's inventory turnover ratios for the last two years (2022 and 2023) are above 6, which indicates a healthy turnover of inventory. However, it is essential for the company to continue monitoring and managing its inventory effectively to maintain this positive trend and ensure optimal utilization of its resources.