USANA Health Sciences Inc (USNA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 330,420 | 307,081 | 300,183 | 295,454 | 288,420 | 246,879 | 230,370 | 237,753 | 239,832 | 248,695 | 265,368 | 256,964 | 311,917 | 278,418 | 227,368 | 194,098 | 234,830 | 182,748 | 231,353 | 225,041 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 2,999 | 26,854 |
| Total current liabilities | US$ in thousands | 118,845 | 112,559 | 113,839 | 130,222 | 143,833 | 125,846 | 133,594 | 157,967 | 160,790 | 157,964 | 153,000 | 151,452 | 168,073 | 160,863 | 139,717 | 124,504 | 136,098 | 129,646 | 128,759 | 129,992 |
| Cash ratio | 2.78 | 2.73 | 2.64 | 2.27 | 2.01 | 1.96 | 1.72 | 1.51 | 1.49 | 1.57 | 1.73 | 1.70 | 1.86 | 1.73 | 1.63 | 1.56 | 1.73 | 1.41 | 1.82 | 1.94 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($330,420K
+ $—K)
÷ $118,845K
= 2.78
The cash ratio of USANA Health Sciences Inc has shown a generally positive trend over the past few quarters, indicating a strengthening liquidity position. The ratio has consistently been above 1, which suggests that the company has sufficient cash and cash equivalents to cover its short-term obligations.
Specifically, the cash ratio has been steadily increasing from 1.41 in March 2019 to 2.78 in December 2023. This upward trend is a positive sign, indicating an improvement in the company's ability to meet its short-term liabilities strictly with cash resources.
The cash ratio exceeding 1 implies that USANA Health Sciences Inc has more than enough cash to cover its current liabilities, providing a buffer for unexpected expenses or economic downturns. However, it is important to note that a very high cash ratio could also signify that the company is holding onto excess cash that could potentially be invested elsewhere for better returns.
Overall, the increasing trend in USANA's cash ratio demonstrates a solid liquidity position, which is essential for the company's financial stability and ability to operate smoothly in the short term.