USANA Health Sciences Inc (USNA)
Payables 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 |
| Payables | US$ in thousands | 10,070 | 11,049 | 13,508 | 18,195 | 12,525 |
| Payables turnover | 43.25 | 41.44 | 36.88 | 25.92 | 14.97 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $435,517K ÷ $10,070K
= 43.25
The payables turnover ratio of USANA Health Sciences Inc has been steadily increasing over the past five years, indicating an improvement in the company's ability to efficiently manage its accounts payable. The ratio increased from 14.97 in 2019 to 43.25 in 2023, which suggests that the company is paying its suppliers at a much faster rate compared to the previous years.
This trend signifies that USANA Health Sciences Inc is effectively managing its payables by either negotiating better payment terms with its suppliers or optimizing its internal processes to expedite invoice processing and payment. A higher payables turnover ratio generally indicates that the company is able to convert its accounts payable into cash quickly, which can be beneficial for improving liquidity and strengthening relationships with suppliers.
Overall, the increasing trend in payables turnover for USANA Health Sciences Inc reflects positively on its financial management practices and operational efficiency in managing its payables.