USANA Health Sciences Inc (USNA)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.00 | 3.52 | 2.67 | 2.27 | 2.53 |
| Quick ratio | 1.36 | 2.84 | 2.06 | 1.54 | 1.90 |
| Cash ratio | 1.30 | 2.78 | 2.01 | 1.49 | 1.86 |
USANA Health Sciences Inc's liquidity ratios indicate the company's ability to meet its short-term financial obligations. The current ratio, which measures the company's ability to pay off current liabilities with current assets, has shown some fluctuations over the years. It decreased from 2.53 in 2020 to 2.27 in 2021, before increasing to 2.67 in 2022 and significantly improving to 3.52 in 2023, then slightly dropping to 2.00 in 2024.
The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, also fluctuated. It decreased from 1.90 in 2020 to 1.54 in 2021, rose to 2.06 in 2022, further improved to 2.84 in 2023, then decreased to 1.36 in 2024.
The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents to cover current liabilities, followed a similar trend. It decreased from 1.86 in 2020 to 1.49 in 2021, increased to 2.01 in 2022, improved to 2.78 in 2023, and slightly dropped to 1.30 in 2024.
Overall, the current, quick, and cash ratios suggest that USANA Health Sciences Inc has maintained a relatively stable liquidity position over the years, with improvements in 2022 and 2023, but a slight decline in 2024. It is important for the company to ensure that it has sufficient liquidity to meet its short-term financial obligations and fund its operations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 52.98 | 45.91 | 47.30 | 64.33 | 58.13 |
The cash conversion cycle of USANA Health Sciences Inc has shown fluctuations over the years, indicating changes in the efficiency of its working capital management. In December 31, 2020, the cash conversion cycle was 58.13 days, which increased to 64.33 days by December 31, 2021. However, the company improved its working capital efficiency in the subsequent years, with the cycle decreasing to 47.30 days by December 31, 2022, and further to 45.91 days by December 31, 2023. By December 31, 2024, the cash conversion cycle slightly increased to 52.98 days.
Overall, USANA Health Sciences Inc has shown variations in its cash conversion cycle, indicating a need for continuous monitoring and management of its working capital components such as inventory, accounts receivable, and accounts payable to enhance operational efficiency and maximize cash flow.