USANA Health Sciences Inc (USNA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 63,788 | 69,350 | 116,505 | 124,664 | 100,526 |
| Total stockholders’ equity | US$ in thousands | 497,202 | 434,472 | 395,124 | 441,650 | 351,712 |
| ROE | 12.83% | 15.96% | 29.49% | 28.23% | 28.58% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $63,788K ÷ $497,202K
= 12.83%
The Return on Equity (ROE) of USANA Health Sciences Inc has exhibited a decreasing trend over the past five years, with the ratios as follows: 12.83% in 2023, 15.96% in 2022, 29.49% in 2021, 28.23% in 2020, and 28.58% in 2019.
The decrease in ROE from 2019 to 2023 indicates a potential decline in the company's profitability relative to its shareholders' equity. This downward trend may be a cause for concern as it suggests that the company's ability to generate profits from the shareholders' investments has weakened over time.
It is essential for investors and stakeholders to further investigate the factors contributing to this declining trend in ROE, such as changes in net income, total assets, or debt levels. Identifying the underlying causes of the decreasing ROE can help management make informed decisions to improve the company's profitability and enhance shareholder value in the future.