USANA Health Sciences Inc (USNA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 68,814 | 87,360 | 92,333 | 101,346 | 102,715 | 98,793 | 101,475 | 104,026 | 108,813 | 117,643 | 134,755 | 159,677 | 170,699 | 192,458 | 197,742 | 183,612 | 178,455 | 170,856 | 161,114 | 153,440 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 12.93% | 16.39% | 18.03% | 20.27% | 20.66% | 21.00% | 21.64% | 22.85% | 25.04% | 28.62% | 33.38% | 40.95% | 43.20% | 48.23% | 47.24% | 45.59% | 40.41% | 43.91% | 46.15% | 48.31% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $68,814K ÷ ($—K + $532,109K)
= 12.93%
The return on total capital for USANA Health Sciences Inc has been gradually decreasing over the years based on the provided data. Starting at a high of 48.31% in March 2020, the return on total capital steadily declined to 12.93% by December 2024. This indicates a potential decrease in the company's efficiency in generating returns from its total invested capital.
A high return on total capital is generally desirable as it signifies that the company is effectively utilizing its capital to generate profits. However, the decreasing trend observed in USANA Health Sciences Inc's return on total capital may raise concerns regarding the company's operational efficiency, capital allocation decisions, or overall profitability.
It is crucial for investors and stakeholders to monitor this metric closely to understand the company's ability to generate returns relative to the capital invested. Further analysis may be required to identify the underlying factors contributing to the decline in the return on total capital and to assess the company's future financial performance and sustainability.