Nu Skin Enterprises Inc (NUS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 48,268 | 110,847 | 233,992 | 257,564 | 267,426 |
| Total assets | US$ in thousands | 1,806,460 | 1,820,970 | 1,906,480 | 1,957,080 | 1,769,010 |
| Operating ROA | 2.67% | 6.09% | 12.27% | 13.16% | 15.12% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $48,268K ÷ $1,806,460K
= 2.67%
Nu Skin Enterprises, Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past five years. In 2023, the operating ROA decreased to 3.77% from 8.75% in 2022, indicating a decrease in the company's ability to generate profits from its assets solely from operations. This decline may be a concern to investors and stakeholders as it suggests a potential inefficiency in asset utilization or a decrease in operational profitability. Further analysis of the company's operational efficiency and profitability drivers is recommended to understand the underlying factors contributing to this decline in operating ROA.
Peer comparison
Dec 31, 2023