Nu Skin Enterprises Inc (NUS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,806,460 | 1,820,970 | 1,906,480 | 1,957,080 | 1,769,010 |
| Total stockholders’ equity | US$ in thousands | 821,968 | 897,296 | 912,772 | 894,271 | 875,289 |
| Financial leverage ratio | 2.20 | 2.03 | 2.09 | 2.19 | 2.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,806,460K ÷ $821,968K
= 2.20
The financial leverage ratio of Nu Skin Enterprises, Inc. has shown some variation over the past five years. The ratio increased from 2.02 in 2019 to 2.20 in 2023, with fluctuations in between. This indicates that the company has been relying more on debt to finance its operations and growth, relative to its equity. A higher financial leverage ratio typically suggests higher financial risk for the company, as it implies a higher level of debt in its capital structure. It is important for stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations and manage its financial risk effectively. Further analysis of the company's debt structure and profitability should be conducted to gain a more comprehensive understanding of its financial leverage position.
Peer comparison
Dec 31, 2023