USANA Health Sciences Inc (USNA)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 368,591 | 375,026 | 381,774 | 386,256 | 457,917 | 470,953 | 475,733 | 489,083 | 498,187 | 505,416 | 444,414 | 362,834 | 279,609 | 197,380 | 188,841 | 187,661 | 187,503 | 189,681 | 193,739 | 197,236 |
| Inventory | US$ in thousands | 61,454 | 60,081 | 61,962 | 64,490 | 67,089 | 67,278 | 84,164 | 97,581 | 98,318 | 96,316 | 89,587 | 87,646 | 90,224 | 78,167 | 69,279 | 60,568 | 68,905 | 76,141 | 88,127 | 86,465 |
| Inventory turnover | 6.00 | 6.24 | 6.16 | 5.99 | 6.83 | 7.00 | 5.65 | 5.01 | 5.07 | 5.25 | 4.96 | 4.14 | 3.10 | 2.53 | 2.73 | 3.10 | 2.72 | 2.49 | 2.20 | 2.28 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $368,591K ÷ $61,454K
= 6.00
The inventory turnover ratio for USANA Health Sciences Inc has shown fluctuations over the past few quarters. Inventory turnover measures the efficiency of a company in managing its inventory levels and indicates how quickly a company sells and replaces its inventory.
USANA's inventory turnover ratio ranged between 2.20 and 7.00 over the current period, with the latest ratio reported at 6.00 as of December 31, 2023. Generally, a higher inventory turnover ratio is considered favorable as it suggests that the company is selling its inventory more efficiently.
Throughout the period, the inventory turnover ratio fluctuated, showing some instability in managing inventory levels. The company experienced a peak in inventory turnover in the third quarter of 2022, with a ratio of 7.00, but it decreased steadily in the subsequent quarters until the recent increase to 6.00 in the last quarter of 2023.
USANA Health Sciences Inc should continue to monitor its inventory turnover ratio to ensure optimal inventory management. A stable and preferably increasing trend in the inventory turnover ratio indicates efficient inventory management and healthy sales activity.