USANA Health Sciences Inc (USNA)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.50 | 53.48 | 72.03 | 69.83 | 134.13 |
| Days of sales outstanding (DSO) | days | 2.84 | 2.63 | 2.20 | 2.38 | 3.01 |
| Number of days of payables | days | 8.44 | 8.81 | 9.90 | 14.08 | 24.38 |
| Cash conversion cycle | days | 45.91 | 47.30 | 64.33 | 58.13 | 112.77 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.50 + 2.84 – 8.44
= 45.91
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. In the case of USANA Health Sciences Inc, the trend in the cash conversion cycle over the past five years shows fluctuations.
In the fiscal year ending on December 31, 2019, USANA Health Sciences Inc had a relatively high cash conversion cycle of 112.77 days, indicating a significant amount of time taken to convert its investments into cash flows.
Over the following years, the company managed to reduce its cash conversion cycle, reaching its lowest level in the fiscal year ending on December 31, 2023, at 45.91 days. This improvement indicates that USANA Health Sciences Inc became more efficient in managing its working capital and converting its resources into cash.
Overall, the decreasing trend in the cash conversion cycle for USANA Health Sciences Inc suggests improved efficiency in managing its inventory, accounts receivable, and accounts payable. This trend indicates better liquidity and operational performance for the company.