USANA Health Sciences Inc (USNA)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.86 | 58.47 | 59.24 | 60.94 | 53.48 | 52.14 | 64.57 | 72.82 | 72.03 | 69.56 | 73.58 | 88.17 | 117.78 | 144.55 | 133.91 | 117.80 | 134.13 | 146.52 | 166.03 | 160.01 |
| Days of sales outstanding (DSO) | days | 2.85 | — | — | — | 2.63 | — | — | — | 2.20 | — | — | — | 2.38 | — | — | — | 3.01 | — | — | — |
| Number of days of payables | days | 9.97 | 9.07 | 8.87 | 9.93 | 8.81 | 8.03 | 7.81 | 8.39 | 9.90 | 9.90 | 10.80 | 12.02 | 23.75 | 26.21 | 21.15 | 23.00 | 24.38 | 16.56 | 22.03 | 21.65 |
| Cash conversion cycle | days | 53.73 | 49.40 | 50.37 | 51.01 | 47.30 | 44.11 | 56.77 | 64.43 | 64.33 | 59.66 | 62.78 | 76.15 | 96.41 | 118.34 | 112.76 | 94.81 | 112.77 | 129.96 | 144.00 | 138.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.86 + 2.85 – 9.97
= 53.73
The cash conversion cycle of USANA Health Sciences Inc has shown fluctuations over the past few years. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent period of December 31, 2023, the cash conversion cycle stood at 53.73 days, indicating that it takes approximately 53.73 days for USANA Health Sciences Inc to convert its investments in inventory and other operating resources into cash flows from sales. This is a slight increase from the previous quarter but still relatively efficient compared to earlier periods.
Looking at historical trends, there have been instances of longer cash conversion cycles, such as in December 2020 and September 2020, where the cycle exceeded 100 days, peaking at 144 days in December 2019. This suggests that USANA Health Sciences Inc faced challenges in efficiently managing its working capital during those periods.
Overall, a decreasing trend in the cash conversion cycle from 2020 to 2023 indicates that the company has been improving its efficiency in managing its working capital and converting investments into cash inflows. However, fluctuations in the cycle point to the need for continued monitoring and management of operating activities to ensure optimal working capital management and liquidity.