Nu Skin Enterprises Inc (NUS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 52,178 | 102,470 | 243,459 | 269,332 | 274,372 |
| Long-term debt | US$ in thousands | 478,040 | 377,466 | 268,781 | 305,393 | 334,461 |
| Total stockholders’ equity | US$ in thousands | 821,968 | 897,296 | 912,772 | 894,271 | 875,289 |
| Return on total capital | 4.01% | 8.04% | 20.61% | 22.45% | 22.68% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $52,178K ÷ ($478,040K + $821,968K)
= 4.01%
The return on total capital for Nu Skin Enterprises, Inc. has shown a declining trend over the past five years. The return on total capital was 21.61% in 2019, then decreased to 20.82% in 2020, further down to 22.09% in 2021, significantly dropped to 12.15% in 2022, and finally decreased to 5.10% in 2023. This decline indicates that the company's ability to generate profits from its total capital employed has been diminishing. It is essential for the company to closely assess and address the factors contributing to this declining trend to improve its efficiency in utilizing its total capital resources effectively in the future.
Peer comparison
Dec 31, 2023