USANA Health Sciences Inc (USNA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 632,757 | 596,549 | 577,740 | 640,887 | 516,934 |
| Total stockholders’ equity | US$ in thousands | 497,202 | 434,472 | 395,124 | 441,650 | 351,712 |
| Financial leverage ratio | 1.27 | 1.37 | 1.46 | 1.45 | 1.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $632,757K ÷ $497,202K
= 1.27
The financial leverage ratio of USANA Health Sciences Inc has shown a decreasing trend from 1.47 in 2019 to 1.27 in 2023. This indicates that the company is relying less on debt to finance its operations and growth over the years. A lower financial leverage ratio suggests a lower financial risk for the company as it indicates a lower proportion of debt in its capital structure compared to equity. However, it is important to note that a very low leverage ratio may also limit the company's ability to take advantage of growth opportunities that require external financing. Overall, the decreasing trend in the financial leverage ratio of USANA Health Sciences Inc reflects a prudent and conservative approach to managing its capital structure and financial risk.