USANA Health Sciences Inc (USNA)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 3.52 | 2.67 | 2.27 | 2.53 | 2.42 |
| Quick ratio | 2.84 | 2.06 | 1.54 | 1.90 | 1.79 |
| Cash ratio | 2.78 | 2.01 | 1.49 | 1.86 | 1.73 |
USANA Health Sciences Inc's liquidity ratios have shown a consistently strong position over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has gradually improved from 2.42 in 2019 to 3.52 in 2023. This indicates that USANA Health Sciences Inc has more than enough current assets to cover its short-term liabilities.
The quick ratio, also known as the acid-test ratio, further highlights the company's liquidity strength by excluding inventory from current assets. The trend for the quick ratio has also been positive, increasing from 1.79 in 2019 to 2.84 in 2023. This indicates that USANA Health Sciences Inc is capable of meeting its short-term liabilities even without relying on inventory.
The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, has also shown improvement over the years. The ratio has increased from 1.73 in 2019 to 2.78 in 2023, indicating that USANA Health Sciences Inc holds a sufficient amount of cash to meet its immediate obligations.
Overall, the liquidity ratios of USANA Health Sciences Inc suggest that the company is in a robust financial position and has a strong ability to meet its short-term obligations. The consistent improvement in these ratios over the years reflects the company's effective management of its current assets and liquidity.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 45.91 | 47.30 | 64.33 | 58.13 | 112.77 |
The cash conversion cycle of USANA Health Sciences Inc has shown improvement over the past five years. The cycle measures the time it takes for the company to convert its investments in inventory into cash receipts from customers.
In 2019, the cash conversion cycle was significantly higher at 112.77 days, indicating a longer period required to convert inventory into cash. This suggests potential inefficiencies in managing inventory and collecting cash from customers.
From 2019 to 2023, there was a consistent decrease in the cash conversion cycle, showing progression towards a more efficient operation. By the end of 2023, the cycle had reduced to 45.91 days, reflecting improved inventory management and faster cash conversion processes.
Overall, USANA Health Sciences Inc has successfully reduced its cash conversion cycle over the years, indicating better working capital management and enhanced efficiency in their operations. The downward trend suggests the company's efforts in optimizing its cash flow and enhancing financial performance.