USANA Health Sciences Inc (USNA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 66,324 | 102,715 | 108,813 | 170,699 | 178,455 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 532,109 | 497,202 | 434,472 | 395,124 | 441,650 |
| Return on total capital | 12.46% | 20.66% | 25.04% | 43.20% | 40.41% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $66,324K ÷ ($—K + $532,109K)
= 12.46%
The return on total capital for USANA Health Sciences Inc has displayed a fluctuating trend over the last five years. It stood at 40.41% as of December 31, 2020, exhibiting a strong performance. Subsequently, the return on total capital increased further to 43.20% by December 31, 2021, indicating efficient utilization of both equity and debt to generate profits.
However, there was a notable decline in the return on total capital to 25.04% by December 31, 2022, suggesting a potential decrease in the company's ability to generate returns on its overall capital employed. This trend continued with a further decrease to 20.66% by December 31, 2023, reflecting possible challenges in maintaining profitability relative to the total capital invested.
The most recent figure of 12.46% as of December 31, 2024, shows a substantial decline in the return on total capital, indicating a significant drop in the company's profitability relative to the total capital invested compared to the previous years.
Overall, the fluctuating trend in the return on total capital for USANA Health Sciences Inc highlights the importance of closely monitoring the company's ability to effectively generate returns on its total capital base, as it can have significant implications for its financial performance and long-term sustainability.