Usana Health Sciences(Usna) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios

Profitability Trend (Last 5 Years)

Profitability - return on equity

This chart shows the historical trend of return on equity for USNA compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', USNA's return on equity was 29.5%, measuring profitability for shareholders. Industry average for Medicinal Chemicals and Botanical Products in '2021' stood at 42.6%.
• In '2022', USNA's return on equity was 16.7%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medicinal Chemicals and Botanical Products in '2022' stood at -50.5%. Industry average declined by 93.1% from previous year.
• In '2023', USNA's return on equity was 13.7%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medicinal Chemicals and Botanical Products in '2023' stood at -64.8%. Industry average declined by 14.3% from previous year.
• In '2024', USNA's return on equity was 8.2%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medicinal Chemicals and Botanical Products in '2024' stood at -23.0%. Industry average increased by 41.8% compared to previous year.
Overall, USNA's return on equity has been volatile but showed a downward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.