Nu Skin Enterprises Inc (NUS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 69.80% | 69.29% | 71.51% | 71.73% | 72.14% | 72.75% | 74.44% | 74.88% | 75.18% | 75.06% | 74.75% | 74.58% | 74.88% | 75.50% | 76.21% | 76.36% | 76.41% | 76.81% | 76.90% | 77.06% |
| Operating profit margin | 2.48% | 3.00% | 3.24% | 3.58% | 5.01% | 4.39% | 7.67% | 8.54% | 8.71% | 10.94% | 11.02% | 10.39% | 10.02% | 9.31% | 9.58% | 10.24% | 11.11% | 9.26% | 9.37% | 9.41% |
| Pretax margin | 1.37% | 2.09% | 2.32% | 2.53% | 4.02% | 3.51% | 7.30% | 8.36% | 8.65% | 11.05% | 11.04% | 10.62% | 9.97% | 9.09% | 9.12% | 9.57% | 10.60% | 8.64% | 8.69% | 8.46% |
| Net profit margin | 0.44% | 2.94% | 3.45% | 3.70% | 4.74% | 1.62% | 4.60% | 5.30% | 5.48% | 8.32% | 8.37% | 8.02% | 7.45% | 6.58% | 6.37% | 6.54% | 7.21% | 4.63% | 4.83% | 4.86% |
Nu Skin Enterprises, Inc. has displayed consistent gross profit margins over the past eight quarters, averaging around 70%. This indicates that the company has effectively managed its production costs and is generating a strong gross profit from its sales.
However, there is a trend of declining operating profit margins over the same period, indicating that Nu Skin is experiencing increasing operating expenses relative to its revenue. This suggests that the company may need to focus on controlling costs to improve its operational efficiency.
The pretax margin has shown variability but generally decreased over the quarters, indicating that Nu Skin's profitability before taxes has been under pressure. This trend suggests that the company may be facing challenges in managing its non-operating expenses or that its tax burden has increased.
Lastly, the net profit margin has also fluctuated over the quarters, with a general decline recently. This means that after accounting for all expenses, including taxes, Nu Skin's profitability has been decreasing. The company may need to implement strategies to boost its bottom line and improve overall financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.67% | 3.33% | 3.47% | 4.10% | 6.09% | 5.88% | 9.96% | 11.80% | 12.27% | 15.31% | 15.18% | 14.56% | 13.16% | 12.30% | 12.22% | 13.48% | 15.12% | 13.31% | 13.51% | 14.27% |
| Return on assets (ROA) | 0.48% | 3.26% | 3.70% | 4.24% | 5.75% | 2.17% | 5.97% | 7.32% | 7.72% | 11.65% | 11.54% | 11.23% | 9.78% | 8.70% | 8.12% | 8.61% | 9.81% | 6.66% | 6.96% | 7.37% |
| Return on total capital | 3.71% | 5.03% | 5.21% | 5.91% | 8.70% | 8.47% | 14.26% | 18.71% | 19.80% | 24.89% | 25.80% | 24.27% | 21.47% | 19.61% | 19.71% | 20.87% | 22.11% | 19.47% | 20.44% | 21.46% |
| Return on equity (ROE) | 1.05% | 7.12% | 7.83% | 8.67% | 11.68% | 4.55% | 12.06% | 14.83% | 16.13% | 24.56% | 25.77% | 25.14% | 21.40% | 19.09% | 18.41% | 18.77% | 19.83% | 13.68% | 14.94% | 15.95% |
Nu Skin Enterprises, Inc. has exhibited a declining trend in its profitability ratios over the last eight quarters. The operating return on assets (Operating ROA) has shown a consistent decrease from 14.54% in Q1 2022 to 3.77% in Q4 2023. This indicates that the company's ability to generate operating income from its assets has deteriorated over time.
Similarly, the Return on assets (ROA) has decreased from 7.32% in Q1 2022 to 0.48% in Q4 2023, reflecting a decline in the company's overall profitability in relation to its total assets. The downward trend is also visible in the Return on total capital and Return on equity (ROE) ratios. Return on equity has decreased from 14.83% in Q1 2022 to 1.05% in Q4 2023, demonstrating a significant reduction in the company's ability to generate profits for its shareholders.
Overall, the declining trend in these profitability ratios may raise concerns about Nu Skin Enterprises, Inc.'s operational efficiency and overall financial performance. It would be crucial for the company's management to analyze the underlying factors contributing to this trend and take appropriate measures to improve profitability and shareholder value in the future.