USANA Health Sciences Inc (USNA)
Working capital 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 |
| Total current assets | US$ in thousands | 417,746 | 384,382 | 365,117 | 425,286 | 329,279 |
| Total current liabilities | US$ in thousands | 118,845 | 143,833 | 160,790 | 168,073 | 136,098 |
| Working capital turnover | 3.09 | 4.16 | 5.82 | 4.42 | 5.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $923,915K ÷ ($417,746K – $118,845K)
= 3.09
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio indicates better utilization of working capital.
Analyzing the working capital turnover of USANA Health Sciences Inc over the past five years, we observe fluctuations in the ratio:
- In 2023, the working capital turnover was 3.09, indicating that the company generated $3.09 in revenue for every dollar of working capital.
- In 2022, the ratio significantly increased to 4.16, suggesting improved efficiency in working capital utilization.
- 2021 saw a substantial increase to 5.82, reflecting a significant improvement in generating sales relative to working capital.
- The ratio slightly decreased in 2020 to 4.42 but remained relatively high compared to previous years.
- In 2019, USANA Health Sciences Inc achieved a working capital turnover of 5.49, indicating the company efficiently converted working capital into sales during that period.
Overall, the trend shows some variations in the working capital turnover ratio from year to year. USANA Health Sciences Inc seemed to have efficiently utilized its working capital in generating revenue, with some years exhibiting better performance than others. Further analysis of company operations and industry benchmarks could provide more insights into the effectiveness of its working capital management.