Nu Skin Enterprises Inc (NUS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 701,871 | 759,868 | 872,950 | 903,198 | 740,166 |
| Total current liabilities | US$ in thousands | 328,871 | 359,243 | 529,694 | 542,856 | 356,760 |
| Current ratio | 2.13 | 2.12 | 1.65 | 1.66 | 2.07 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $701,871K ÷ $328,871K
= 2.13
The current ratio measures a company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates stronger liquidity and financial health.
Nu Skin Enterprises, Inc.'s current ratio has shown some fluctuations over the past five years, ranging from 1.65 in 2021 to 2.13 in 2023. A ratio above 1 suggests the company has more current assets than current liabilities.
In 2023 and 2022, the company's current ratio improved to 2.13 and 2.12, respectively, indicating a more comfortable liquidity position. This may suggest that Nu Skin Enterprises has sufficient short-term assets to cover its current liabilities.
On the other hand, the lower ratios in 2021 and 2020, at 1.65 and 1.66 respectively, might signal a slightly weaker liquidity position during those years. It is essential for the company to continue monitoring and managing its current assets and liabilities effectively to ensure it can meet its short-term obligations in a sustainable manner.
Overall, the current ratio of Nu Skin Enterprises, Inc. shows variability over the years, but recent improvements indicate a stronger liquidity position. It is important for investors and stakeholders to consider the trend in the current ratio alongside other financial metrics for a comprehensive analysis of the company's financial health.
Peer comparison
Dec 31, 2023