USANA Health Sciences Inc (USNA)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 42,030 | 54,342 | 55,082 | 61,942 | 63,788 | 59,817 | 63,399 | 65,264 | 69,350 | 76,875 | 89,276 | 108,353 | 116,505 | 135,814 | 138,990 | 128,733 | 124,664 | 115,789 | 109,505 | 102,906 |
| Total stockholders’ equity | US$ in thousands | 532,109 | 533,087 | 512,208 | 499,988 | 497,202 | 470,394 | 468,824 | 455,354 | 434,472 | 411,099 | 403,681 | 389,946 | 395,124 | 399,079 | 418,623 | 402,777 | 441,650 | 389,117 | 349,076 | 317,608 |
| ROE | 7.90% | 10.19% | 10.75% | 12.39% | 12.83% | 12.72% | 13.52% | 14.33% | 15.96% | 18.70% | 22.12% | 27.79% | 29.49% | 34.03% | 33.20% | 31.96% | 28.23% | 29.76% | 31.37% | 32.40% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $42,030K ÷ $532,109K
= 7.90%
USANA Health Sciences Inc has shown a declining trend in its return on equity (ROE) over the period from March 31, 2020, to December 31, 2024. The ROE decreased from 32.40% in March 2020 to 7.90% in December 2024, indicating a deterioration in the company's ability to generate profit from its shareholders' equity.
The decreasing ROE could be attributed to various factors such as declining profitability, inefficient management of assets, or increasing levels of debt that are impacting the company's financial performance. A low ROE may signal to investors that the company is not effectively utilizing its equity to generate profits.
It is essential for the company to assess the reasons behind the decreasing ROE and implement strategies to improve it. This could include measures to enhance operational efficiency, increase profitability, optimize the capital structure, or allocate resources more effectively to generate higher returns for shareholders.