USANA Health Sciences Inc (USNA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.91% | 80.56% | 80.33% | 81.38% | 81.35% |
| Operating profit margin | 7.74% | 10.07% | 10.74% | 14.30% | 15.51% |
| Pretax margin | 8.91% | 11.09% | 10.84% | 14.34% | 15.64% |
| Net profit margin | 4.91% | 6.90% | 6.92% | 9.79% | 10.96% |
Based on the provided data, we can analyze the profitability ratios of USANA Health Sciences Inc over the five-year period from 2020 to 2024.
1. Gross Profit Margin:
USANA's gross profit margin remained relatively stable over the period, ranging from 80.33% to 81.38%. This indicates that the company effectively managed its production and distribution costs to generate a high percentage of revenue as gross profit.
2. Operating Profit Margin:
The operating profit margin showed a declining trend from 15.51% in 2020 to 7.74% in 2024. This suggests that USANA's ability to control its operating expenses and generate profit from its core business operations weakened over the years.
3. Pretax Margin:
USANA's pretax margin also exhibited a decreasing trend, falling from 15.64% in 2020 to 8.91% in 2024. It indicates that the company's profitability before considering taxes decreased over the years, possibly due to various factors impacting its income and expenses.
4. Net Profit Margin:
The net profit margin, representing the company's bottom line profitability, decreased from 10.96% in 2020 to 4.91% in 2024. This declining trend highlights challenges in maintaining profitability after accounting for all expenses, including taxes and interest payments.
Overall, the declining trend in operating profit margin, pretax margin, and net profit margin raises concerns about USANA Health Sciences Inc's ability to sustain profitability and efficiency in its operations over the years. The company may need to address cost management strategies and revenue generation to improve its overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.86% | 14.71% | 18.04% | 29.46% | 27.54% |
| Return on assets (ROA) | 5.62% | 10.08% | 11.63% | 20.17% | 19.45% |
| Return on total capital | 12.46% | 20.66% | 25.04% | 43.20% | 40.41% |
| Return on equity (ROE) | 7.90% | 12.83% | 15.96% | 29.49% | 28.23% |
USANA Health Sciences Inc's profitability ratios exhibit a gradual decline over the years, indicating a potential decrease in the company's profitability and efficiency in generating returns.
1. Operating Return on Assets (Operating ROA): This ratio measures the company's operating income generated per dollar of assets. USANA Health Sciences Inc's Operating ROA decreased from 29.46% in 2021 to 8.86% in 2024, signifying a decline in the company's operational efficiency and profitability.
2. Return on Assets (ROA): ROA evaluates the company's overall efficiency in generating profits from its assets. USANA Health Sciences Inc's ROA declined from 20.17% in 2021 to 5.62% in 2024, suggesting a reduction in the company's ability to generate profits from its total assets.
3. Return on Total Capital: This ratio assesses the company's profitability based on the total capital employed. USANA Health Sciences Inc's Return on Total Capital decreased from 43.20% in 2021 to 12.46% in 2024, indicating a diminishing capability of the company to generate profits relative to its total capital.
4. Return on Equity (ROE): ROE measures the return generated on shareholders' equity. USANA Health Sciences Inc's ROE declined from 29.49% in 2021 to 7.90% in 2024, indicating a decrease in the company's ability to generate returns for its equity shareholders.
In summary, the declining trend in profitability ratios suggests that USANA Health Sciences Inc may be facing challenges in maintaining its profitability and generating satisfactory returns for its stakeholders.