USANA Health Sciences Inc (USNA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.41 | 1.27 | 1.37 | 1.46 | 1.45 |
USANA Health Sciences Inc has consistently maintained a strong solvency position over the past five years, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which were recorded at 0.00 for each year from 2020 to 2024. These ratios suggest that the company has minimal debt in relation to its assets, capital, and equity, highlighting a favorable financial structure with little risk associated with financial leverage.
Furthermore, the financial leverage ratio, which measures the degree of financial leverage in a company, has shown slight fluctuations over the five-year period. Starting at 1.45 in 2020 and peaking at 1.46 in 2021, the ratio decreased to 1.27 in 2023 before rising to 1.41 in 2024. Despite the fluctuations, the ratios have generally remained within a reasonable range, reflecting a balanced approach to leveraging and indicating the company's ability to support its operations and growth initiatives through a healthy mix of debt and equity.
Overall, USANA Health Sciences Inc's solvency ratios demonstrate a stable and sound financial position, with limited reliance on debt and efficient use of capital to support its business activities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 236.03 | 392.04 | 566.73 | 2,994.72 | 351.98 |
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio is generally considered positive as it shows the company has more than enough earnings to cover its interest expenses.
In the case of USANA Health Sciences Inc, its interest coverage ratio has varied over the past few years. As of December 31, 2020, the interest coverage ratio stood at 351.98, indicating a strong ability to cover interest payments. This ratio increased significantly to 2,994.72 by December 31, 2021, showcasing a substantial improvement in the company's ability to handle its interest obligations.
However, there was a notable decrease in the interest coverage ratio to 566.73 by December 31, 2022, which might indicate a lower level of earnings relative to interest expenses compared to the previous year. Subsequently, by December 31, 2023, the ratio decreased further to 392.04, suggesting a potential challenge in meeting interest payments.
By December 31, 2024, the interest coverage ratio dropped to 236.03, reflecting a continued decrease in the company's ability to cover its interest expenses. Overall, while USANA Health Sciences Inc's interest coverage has shown significant fluctuations, it is essential for the company to closely monitor this ratio to ensure its ability to meet its debt obligations in a sustainable manner.