USANA Health Sciences Inc (USNA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 102,715 | 108,813 | 170,699 | 178,455 | 150,562 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 497,202 | 434,472 | 395,124 | 441,650 | 351,712 |
| Return on total capital | 20.66% | 25.04% | 43.20% | 40.41% | 42.81% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $102,715K ÷ ($—K + $497,202K)
= 20.66%
The return on total capital for USANA Health Sciences Inc has exhibited a declining trend over the past five years, decreasing from 42.81% in 2019 to 20.66% in 2023. This indicates that the company's ability to generate profits from its total capital employed has weakened over the period. The peak return on total capital was observed in 2021 at 43.20%, demonstrating a strong performance in that year. However, the subsequent years have shown a gradual decline in this metric.
A return on total capital above 20% generally signifies a healthy performance, as it indicates that the company is generating substantial profits relative to its total capital investment. Despite the recent decrease in this ratio, USANA Health Sciences Inc's return on total capital remains above this threshold, suggesting that the company is still efficiently utilizing its capital to generate returns for its investors.
It is important for stakeholders to closely monitor this trend and assess the factors contributing to the fluctuation in the return on total capital to ensure the company's long-term profitability and sustainability. Additional analysis of USANA Health Sciences Inc's financial statements and operational performance may provide further insights into the drivers behind the changes in its return on total capital.