USANA Health Sciences Inc (USNA)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 102,453 | 98,644 | 101,337 | 103,835 | 108,621 | 117,465 | 134,591 | 159,593 | 170,642 | 193,527 | 197,452 | 183,121 | 177,948 | 169,219 | 160,832 | 153,365 | 150,496 | 154,157 | 164,795 | 183,813 |
| Revenue (ttm) | US$ in thousands | 923,232 | 929,999 | 950,124 | 976,483 | 1,001,860 | 1,041,382 | 1,082,496 | 1,155,009 | 1,190,168 | 1,235,586 | 1,258,823 | 1,180,028 | 1,137,751 | 1,095,421 | 1,057,506 | 1,054,531 | 1,060,902 | 1,088,627 | 1,124,796 | 1,170,240 |
| Pretax margin | 11.10% | 10.61% | 10.67% | 10.63% | 10.84% | 11.28% | 12.43% | 13.82% | 14.34% | 15.66% | 15.69% | 15.52% | 15.64% | 15.45% | 15.21% | 14.54% | 14.19% | 14.16% | 14.65% | 15.71% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $102,453K ÷ $923,232K
= 11.10%
The pretax margin for USANA Health Sciences Inc has exhibited fluctuations over the past five years, with a general trend of decrease from 2019 to 2023. The company's pretax margin declined from 15.71% in March 2019 to 11.10% in December 2023. This indicates a decrease in the proportion of pre-tax profits generated from revenue over the period.
The pretax margin peaked at 15.69% in June 2021 but has since been on a downward trajectory. The decreasing trend suggests that the company has experienced challenges in maintaining profitability as a percentage of revenue. It is important for investors and stakeholders to closely monitor this metric to assess the company's ability to generate profits before taxes relative to its sales.
The decline in pretax margin could be attributed to various factors such as increasing operating expenses, pricing pressures, changes in sales mix, or competitive dynamics within the industry. Management may need to implement strategic initiatives to enhance operational efficiency, optimize cost structures, and improve revenue generation to reverse this trend and ensure sustainable profitability in the long term.