Nu Skin Enterprises Inc (NUS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.90% | 72.36% | 75.67% | 74.83% | 76.53% |
| Operating profit margin | 2.49% | 5.03% | 8.76% | 10.02% | 11.13% |
| Pretax margin | 1.37% | 4.04% | 8.71% | 9.97% | 10.62% |
| Net profit margin | 0.44% | 4.75% | 5.52% | 7.44% | 7.22% |
Nu Skin Enterprises, Inc.'s profitability ratios show a general decline over the five-year period from 2019 to 2023. The gross profit margin decreased from 75.98% in 2019 to 68.93% in 2023, indicating a reduction in the company's ability to generate profits from its core operations.
The operating profit margin also declined significantly from 11.05% in 2019 to 3.46% in 2023, reflecting a decrease in the company's profitability after accounting for operating expenses. This suggests that Nu Skin Enterprises may be facing challenges in controlling its costs and improving operational efficiency.
Similarly, the pretax margin and net profit margin experienced a downward trend over the period. The pretax margin dropped from 10.54% in 2019 to 1.35% in 2023, while the net profit margin decreased from 7.17% in 2019 to 0.44% in 2023. These reductions indicate a decline in the company's ability to generate profits after accounting for taxes and other expenses.
Overall, the declining trend in Nu Skin Enterprises' profitability ratios raises concerns about its financial performance and may indicate potential challenges that the company is facing in maintaining and increasing its profitability over time.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.67% | 6.09% | 12.27% | 13.16% | 15.12% |
| Return on assets (ROA) | 0.48% | 5.75% | 7.72% | 9.78% | 9.81% |
| Return on total capital | 4.01% | 8.04% | 20.61% | 22.45% | 22.68% |
| Return on equity (ROE) | 1.05% | 11.68% | 16.13% | 21.40% | 19.83% |
Nu Skin Enterprises, Inc. has shown a declining trend in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has decreased from 15.12% in 2019 to 3.77% in 2023, indicating that the company's operating profit generated from its assets has declined significantly.
Similarly, the return on assets (ROA) has also decreased from 9.81% in 2019 to 0.48% in 2023, suggesting that the overall profitability of the company in relation to its total assets has deteriorated.
The return on total capital has followed a similar trend, decreasing from 21.61% in 2019 to 5.10% in 2023. This ratio reflects the overall return generated by the company's total invested capital, including both equity and debt, and the declining trend indicates a reduction in the efficiency of capital utilization.
Lastly, the return on equity (ROE) has shown a sharp decline from 19.83% in 2019 to 1.05% in 2023, indicating a significant drop in the profitability of the company in terms of its shareholders' equity.
Overall, these declining profitability ratios suggest that Nu Skin Enterprises, Inc. is facing challenges in generating profits from its assets, capital, and equity, which may require further analysis and strategic adjustments to improve its financial performance.