USANA Health Sciences Inc (USNA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.27 | 1.37 | 1.46 | 1.45 | 1.47 |
The solvency ratios of USANA Health Sciences Inc over the past five years demonstrate a consistently low level of debt relative to its assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been reported as 0.00, indicating that the company has not been dependent on external debt to finance its operations or growth.
However, the financial leverage ratio has shown a slight increase over the same period, from 1.27 in 2019 to 1.47 in 2020. This ratio measures the extent to which the company is using debt to finance its operations compared to equity. While the ratio has increased, it is still within a reasonable range and indicates that the company's assets are funded primarily by equity rather than debt.
Overall, based on these solvency ratios, USANA Health Sciences Inc appears to have a strong financial position with minimal reliance on debt for its operations, which can be seen as a positive indicator of its financial stability and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 392.04 | 566.73 | 2,994.72 | 351.98 | 2,281.24 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
USANA Health Sciences Inc's interest coverage has shown significant fluctuations over the past five years. In 2023, the interest coverage ratio was 392.04, a decrease from 566.73 in 2022. The substantial decrease in the ratio could be attributed to a decline in operating income relative to interest expenses.
Comparing to previous years, the interest coverage ratio in 2023 remains relatively strong despite the decrease. In 2021 and 2019, the company had very high interest coverage ratios of 2,994.72 and 2,281.24, respectively, indicating an exceptionally strong ability to cover interest expenses.
Overall, the interest coverage ratio of USANA Health Sciences Inc has shown volatility over the years, with significant fluctuations. It is crucial for investors and analysts to closely monitor the company's ability to generate sufficient operating income to cover its interest expenses in the future.