Nu Skin Enterprises Inc (NUS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	48,268	59,664	65,745	74,766	110,847	103,707	189,375	223,224	233,992	302,370	311,214	283,912	257,564	223,546	219,210	235,338	267,426	231,178	241,961	250,523
Long-term debt	US$ in thousands	478,040	362,896	367,753	372,609	377,466	382,323	387,179	258,995	268,781	278,563	288,343	298,120	305,393	312,664	319,932	327,197	334,461	341,724	348,986	356,247
Total stockholders’ equity	US$ in thousands	821,968	822,187	895,345	892,970	897,296	841,934	941,035	934,200	912,772	936,477	917,826	871,474	894,271	827,473	792,012	800,498	875,289	845,800	834,950	811,195
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $48,268K ÷ ($478,040K + $821,968K)
= 3.71%

The return on total capital for Nu Skin Enterprises, Inc. has exhibited a decreasing trend over the past eight quarters. It decreased from 21.11% in Q1 2022 to 5.10% in Q4 2023. This decline indicates a potential inefficiency in the utilization of the company's capital resources to generate profit. It is essential for the company to focus on improving its operational efficiency and profitability in order to enhance its return on total capital in the future.

Peer comparison

Dec 31, 2023

Company name

Symbol

Return on total capital

Nu Skin Enterprises Inc

NUS

3.71%