USANA Health Sciences Inc (USNA)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 632,757 | 601,148 | 602,680 | 605,533 | 596,549 | 556,063 | 557,959 | 572,919 | 577,740 | 578,946 | 591,449 | 584,512 | 640,887 | 577,532 | 512,151 | 473,750 | 516,934 | 463,041 | 532,401 | 551,583 |
| Total stockholders’ equity | US$ in thousands | 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 | 351,712 | 314,286 | 384,156 | 391,217 |
| Financial leverage ratio | 1.27 | 1.28 | 1.29 | 1.33 | 1.37 | 1.35 | 1.38 | 1.47 | 1.46 | 1.45 | 1.41 | 1.45 | 1.45 | 1.48 | 1.47 | 1.49 | 1.47 | 1.47 | 1.39 | 1.41 |
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 fluctuating values over the past few quarters. The ratio ranged from 1.27 to 1.49 during the period from December 2019 to December 2023. The trend indicates a slight increase in leverage from 1.27 in December 2019 to 1.49 in March 2020, followed by a gradual decline to 1.39 in March 2019, before rising again to 1.41 by December 2019.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. A ratio of 1.27 to 1.49 suggests that the company relies more on debt financing to fund its operations and investments compared to equity financing. This may mean that USANA Health Sciences Inc has a higher level of financial risk due to its leverage position.
It is essential for stakeholders to monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively. The fluctuating nature of the ratio highlights the importance of closely monitoring the company's capital structure and debt levels to ensure sustainable financial health and stability.