Nu Skin Enterprises Inc (NUS)

Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Nu Skin Enterprises, Inc.'s solvency ratios have displayed a generally improving trend over the past five years, indicating a strengthened financial position.

The debt-to-assets ratio has increased from 0.20 in 2019 to 0.28 in 2023. This ratio suggests that 28% of Nu Skin Enterprises' assets are financed by debt, leaving a significant portion covered by equity. The trend indicates a gradual increase in reliance on debt to finance its assets.

The debt-to-capital ratio increased from 0.29 in 2019 to 0.38 in 2023. This ratio reveals that 38% of the company's capital structure is financed by debt. Although the ratio has been on an upward trajectory, it still implies a moderate level of leverage and reliance on debt funding.

The debt-to-equity ratio rose from 0.41 in 2019 to 0.62 in 2023. This ratio signifies that Nu Skin Enterprises has seen an increase in the proportion of debt relative to equity in its capital structure over the years. A higher debt-to-equity ratio can indicate higher financial risk as it suggests greater leverage.

The financial leverage ratio has fluctuated over the years but has generally trended upward, reaching 2.20 in 2023. This ratio highlights the degree to which Nu Skin Enterprises is using debt to finance its operations and investments. A higher financial leverage ratio implies higher financial risk due to increased debt obligations.

In summary, Nu Skin Enterprises, Inc. has experienced a noticeable shift towards a higher proportion of debt in its capital structure, as evidenced by increasing debt ratios over the past five years. While increased debt can enhance returns, it also raises solvency and financial risk concerns that should be carefully monitored and managed by the company.

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Coverage ratios

The interest coverage ratio for Nu Skin Enterprises, Inc. cannot be calculated for the years 2023, 2022, and 2021 as the interest expenses were not provided. However, based on the available data, the interest coverage ratio for the year ended December 31, 2020, was significantly high at 19,812.62. This indicates that the company's operating income was substantially higher than its interest expenses in that year, reflecting a strong ability to meet its interest payment obligations. It is essential to monitor future interest coverage ratios to assess the company's financial health and ability to service its debt effectively.