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Nu Skin Enterprises (Nu Skin Enterprises) Operating Income : $68 Mil (TTM As of Dec. 2023)


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What is Nu Skin Enterprises Operating Income?

Nu Skin Enterprises's Operating Income for the three months ended in Dec. 2023 was $26 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $68 Mil.

Warning Sign:

Nu Skin Enterprises Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nu Skin Enterprises's Operating Income for the three months ended in Dec. 2023 was $26 Mil. Nu Skin Enterprises's Revenue for the three months ended in Dec. 2023 was $489 Mil. Therefore, Nu Skin Enterprises's Operating Margin % for the quarter that ended in Dec. 2023 was 5.33%.

Warning Sign:

Nu Skin Enterprises Inc operating margin has been in a 5-year decline. The average rate of decline per year is -18.8%.

Nu Skin Enterprises's 5-Year average Growth Rate for Operating Margin % was -18.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nu Skin Enterprises's annualized ROC % for the quarter that ended in Dec. 2023 was 6.41%. Nu Skin Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 15.23%.


Nu Skin Enterprises Operating Income Historical Data

The historical data trend for Nu Skin Enterprises's Operating Income can be seen below:

* 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.

* Premium members only.

Nu Skin Enterprises Operating Income Chart

Nu Skin Enterprises Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 267.43 257.56 285.86 159.34 68.06

Nu Skin Enterprises Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.83 25.85 42.51 -26.37 26.07

Nu Skin Enterprises Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $68 Mil.

* 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  (NYSE:NUS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Nu Skin Enterprises's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=104.264 * ( 1 - 21.93% )/( (1249.089 + 1290.095)/ 2 )
=81.3989048/1269.592
=6.41 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1793.091 - 294.015 - ( 249.987 - max(0, 434.015 - 701.122+249.987))
=1249.089

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1806.463 - 248.552 - ( 267.816 - max(0, 328.871 - 701.871+267.816))
=1290.095

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Nu Skin Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=104.264/( ( (515.247 + max(157.12, 0)) + (542.917 + max(154.082, 0)) )/ 2 )
=104.264/( ( 672.367 + 696.999 )/ 2 )
=104.264/684.683
=15.23 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(77.251 + 291.103 + 82.781) - (294.015 + 0 + 0)
=157.12

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(72.879 + 279.978 + 81.198) - (248.552 + 20.388 + 11.033)
=154.082

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Nu Skin Enterprises's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=26.066/488.64
=5.33 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Nu Skin Enterprises Operating Income Related Terms

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Nu Skin Enterprises (Nu Skin Enterprises) 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.
Executives
Andrew D Lipman director NU SKIN ENTERPRISES INC, 75 WEST CENTER, PROVO UT 84601
Laura Nathanson director C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Emma S. Battle director 101 NORTH CHERRY STREET, SUITE 501, WINSTON SALEM NC 27101
Edwina D Woodbury director
Steven Keith Hatchett officer: SVP, Global Products C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Mark H Lawrence officer: Chief Financial Officer 75 WEST CENTER STREET, PROVO X1 84601
Joseph Y Chang officer: President-Pharmanex Division NU SKIN ENTERPRISES INC, 75 WEST CENTER, PROVO UT 84601
Ryan S Napierski officer: Pres Global Sales & Operations C/O NU SKIN ENTERPRISES INC, 75 WEST CENTER STREEET, PROVO UT 84601
James D Thomas officer: Chief Accounting Officer C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Steven Lund director NU SKIN ENTERPRISES INC, 75 WEST CENTER STREET, PROVO UT 84601
Jeffrey Clark Bettinger officer: SVP, People and Places Officer C/O NU SKIN ENTERPRISES, INC., 75 W CENTER ST, PROVO UT 84601
Chayce David Clark officer: EVP and General Counsel C/O NU SKIN ENTERPRISES, INC., 75 W CENTER STREET, PROVO UT 84601
D Matthew Dorny officer: Vice President, other: General Counsel C/O NU SKIN ENTERPRISES, 75 W CENTER ST, PROVO UT 84601
Tang Connie Mang Yee officer: EVP Chief Global Growth &, Customer Experience Officer C/O NU SKIN ENTERPRISES, INC., 75 W CENTER STREET, PROVO UT 84601
Daniel W Campbell director NU SKIN ENTERPRISES INC, 75 WEST CENTER, PROVO UT 84601