Nu Skin Enterprises Inc (NUS)
Debt-to-equity 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-equity ratio | 0.58 | 0.42 | 0.29 | 0.34 | 0.38 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $478,040K ÷ $821,968K
= 0.58
The debt-to-equity ratio of Nu Skin Enterprises, Inc. has shown an increasing trend over the past five years. This ratio indicates the proportion of debt and equity financing used by the company to support its assets.
In 2023, the debt-to-equity ratio stands at 0.62, representing an increase compared to the previous year. This suggests that the company is relying more on debt to finance its operations and growth initiatives, which may indicate higher financial risk. However, it is essential to note that the debt-to-equity ratio of 0.62 is still within a moderate range and does not raise immediate concerns about the company's financial stability.
The rising trend in the debt-to-equity ratio from 2020 to 2023 could imply that Nu Skin Enterprises, Inc. is leveraging more debt to fund its operations or potentially invest in expansion opportunities. While debt can be a cost-effective source of capital, it also exposes the company to interest rate risks and repayment obligations.
Investors and stakeholders should continue to monitor Nu Skin Enterprises, Inc.'s debt management practices and overall financial health closely, considering the increasing debt levels relative to equity in recent years. Additional contextual information and a deeper analysis of the company's financial statements would be necessary to form a more comprehensive assessment of the implications of the evolving debt-to-equity ratio trend.
Peer comparison
Dec 31, 2023