Nu Skin Enterprises Inc (NUS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 478,040 | 377,466 | 268,781 | 305,393 | 334,461 |
| Total assets | US$ in thousands | 1,806,460 | 1,820,970 | 1,906,480 | 1,957,080 | 1,769,010 |
| Debt-to-assets ratio | 0.26 | 0.21 | 0.14 | 0.16 | 0.19 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $478,040K ÷ $1,806,460K
= 0.26
The debt-to-assets ratio of Nu Skin Enterprises, Inc. has been gradually increasing over the past five years. In 2023, the ratio stands at 0.28, indicating that 28% of the company's assets are financed through debt. This represents an increase from 0.23 in 2022, 0.20 in 2021, and 0.18 in 2020. However, it is worth noting that the current ratio is in line with the ratio reported in 2019, which was also 0.20.
The increase in the debt-to-assets ratio over the years may signal that Nu Skin Enterprises, Inc. is taking on more debt to finance its operations or investments. While a higher ratio can indicate higher financial risk due to increased leverage, it can also suggest that the company is utilizing debt strategically to fuel growth. It is important for investors and stakeholders to monitor the trend in the debt-to-assets ratio along with other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023