Nu Skin Enterprises Inc (NUS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,941,710 | 2,203,880 | 2,670,250 | 2,570,960 | 2,403,130 |
| Property, plant and equipment | US$ in thousands | 432,965 | 444,806 | 453,674 | 468,181 | 453,604 |
| Fixed asset turnover | 4.48 | 4.95 | 5.89 | 5.49 | 5.30 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,941,710K ÷ $432,965K
= 4.48
The fixed asset turnover ratio measures how efficiently a company is generating sales from its investment in fixed assets. A higher ratio indicates that the company is generating more sales from its fixed assets.
Nu Skin Enterprises, Inc. has shown a fluctuating trend in its fixed asset turnover ratio over the past five years. In 2023, the fixed asset turnover ratio decreased to 4.55 from 5.00 in 2022. This decline may suggest a reduction in the company's ability to generate sales from its fixed assets efficiently compared to the previous year.
Despite the decrease in 2023, Nu Skin's fixed asset turnover ratio remains relatively high, indicating that it is still effectively utilizing its fixed assets to generate sales. Over the past five years, Nu Skin's fixed asset turnover ratio has generally been above 5, reflecting a consistent ability to generate sales relative to its investment in fixed assets.
Overall, while there was a slight decline in the fixed asset turnover ratio in 2023, Nu Skin Enterprises, Inc. has historically demonstrated efficient utilization of its fixed assets to drive sales, which is a positive indicator of the company's operational efficiency.
Peer comparison
Dec 31, 2023