USANA Health Sciences Inc (USNA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.75 | 56.22 | 53.65 | 51.98 | 51.50 | 49.62 | 50.40 | 51.94 | 53.48 | 52.14 | 64.57 | 72.82 | 72.03 | 69.56 | 73.58 | 88.17 | 117.78 | 144.55 | 133.91 | 117.80 |
| Days of sales outstanding (DSO) | days | 3.50 | — | — | — | 2.84 | — | — | — | 2.63 | — | — | — | 2.20 | — | — | — | 2.38 | — | — | — |
| Number of days of payables | days | 10.27 | 6.19 | 5.77 | 7.06 | 8.44 | 7.70 | 7.54 | 8.47 | 8.81 | 8.03 | 7.81 | 8.39 | 9.90 | 9.90 | 10.80 | 12.02 | 23.75 | 26.21 | 21.15 | 23.00 |
| Cash conversion cycle | days | 52.99 | 50.03 | 47.88 | 44.92 | 45.91 | 41.92 | 42.86 | 43.48 | 47.30 | 44.11 | 56.77 | 64.43 | 64.33 | 59.66 | 62.78 | 76.15 | 96.41 | 118.34 | 112.76 | 94.81 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.75 + 3.50 – 10.27
= 52.99
The cash conversion cycle of USANA Health Sciences Inc has shown a declining trend from March 31, 2020, to December 31, 2024, indicating an improvement in the company's efficiency in managing its working capital. The cash conversion cycle decreased from 94.81 days on March 31, 2020, to 52.99 days on December 31, 2024.
A shorter cash conversion cycle suggests that the company is able to convert its investments in inventory into cash more quickly, which is a positive sign of liquidity and operational efficiency. This improvement could be attributed to better inventory management, faster collection of receivables, and efficient payment of payables.
Overall, the decreasing cash conversion cycle of USANA Health Sciences Inc reflects the company's ability to optimize its working capital and generate cash flows more effectively over the period analyzed. It indicates a positive trend in the company's operational efficiency and financial health.