Nu Skin Enterprises Inc (NUS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 821,968 | 897,296 | 912,772 | 894,271 | 875,289 |
| Debt-to-capital ratio | 0.37 | 0.30 | 0.23 | 0.25 | 0.28 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $478,040K ÷ ($478,040K + $821,968K)
= 0.37
The debt-to-capital ratio of Nu Skin Enterprises, Inc. has shown an increasing trend over the past five years, indicating a rise in the company's reliance on debt to finance its operations and growth. The ratio has increased from 0.29 in 2019 to 0.38 in 2023.
A debt-to-capital ratio of 0.38 in 2023 suggests that 38% of the company's capital is funded by debt, while the remaining 62% is financed by equity. This level of debt financing may indicate a moderate level of financial risk for the company, as higher debt levels can increase interest expenses and financial obligations.
It is important for investors and stakeholders to closely monitor this trend in the debt-to-capital ratio, as a significant increase in debt levels could potentially impact the company's financial stability and ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2023