USANA Health Sciences Inc (USNA)

Payables 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
Payables	US$ in thousands	10,070	9,321	9,273	10,511	11,049	10,362	10,175	11,248	13,508	13,706	13,144	11,952	18,195	14,173	10,942	11,824	12,525	8,605	11,694	11,700
Payables turnover		36.60	40.23	41.17	36.75	41.44	45.45	46.76	43.48	36.88	36.88	33.81	30.36	15.37	13.93	17.26	15.87	14.97	22.04	16.57	16.86

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $368,591K ÷ $10,070K
= 36.60

The payables turnover ratio for USANA Health Sciences Inc has been relatively stable over the past few years, ranging from a low of 13.93 in September 2020 to a high of 46.76 in June 2022. This ratio measures how efficiently the company is managing its accounts payable by indicating how many times during a period suppliers are being paid.

The overall trend indicates that the company has been able to maintain a consistent level of payables turnover, which suggests that USANA Health Sciences Inc has been effectively managing its trade credit agreements and supplier payments. A higher payables turnover ratio generally indicates a shorter time it takes for the company to pay its suppliers, which can be a positive sign of strong cash flow management and good relationships with vendors.

However, the significant fluctuation in the ratio over time may also indicate changes in the company's payment terms or supplier relationships. It is important for stakeholders to closely monitor this ratio to ensure that the company's payables management remains effective and sustainable in the long term.