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Nu Skin Enterprises (STU:NUS) Financial Strength : 7 (As of Mar. 2024)


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What is Nu Skin Enterprises Financial Strength?

Nu Skin Enterprises has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Nu Skin Enterprises's Interest Coverage for the quarter that ended in Mar. 2024 was 2.18. Nu Skin Enterprises's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.33. As of today, Nu Skin Enterprises's Altman Z-Score is 3.28.


Competitive Comparison of Nu Skin Enterprises's Financial Strength

For the Household & Personal Products subindustry, Nu Skin Enterprises's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nu Skin Enterprises's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nu Skin Enterprises's Financial Strength distribution charts can be found below:

* The bar in red indicates where Nu Skin Enterprises's Financial Strength falls into.



Nu Skin Enterprises Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Nu Skin Enterprises's Interest Expense for the months ended in Mar. 2024 was €-7 Mil. Its Operating Income for the months ended in Mar. 2024 was €15 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was €485 Mil.

Nu Skin Enterprises's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*14.68/-6.739
=2.18

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Nu Skin Enterprises's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(27.6 + 485.191) / 1535.688
=0.33

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Nu Skin Enterprises has a Z-score of 3.28, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.28 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Nu Skin Enterprises  (STU:NUS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Nu Skin Enterprises has the Financial Strength Rank of 7.


Nu Skin Enterprises Financial Strength Related Terms

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Nu Skin Enterprises (STU:NUS) Business Description

Traded in Other Exchanges
Address
75 West Center Street, Provo, UT, USA, 84601
Nu Skin Enterprises Inc is a health and beauty direct-selling company with a comprehensive product line: anti-aging skin products; peels, masks, and scrubs; moisturizers; body care; hair care; men's care; oral care; sun protection; and cosmetics. The company has three main product divisions: anti-aging, skin, and pharmaceuticals. The pharmaceuticals division offers nutritionals, weight-management products, and food supplements. The company has operations internationally, in more than 50 countries across the Americas, Europe, and the Asia-Pacific.