Herbalife Nutrition Ltd. (NYSE:HLF) is a global nutrition company that develops and sells dietary supplements, weight management, sports nutrition, and personal-care products. The company operates through a network of independent distributors and is known for its direct-selling model. Herbalife competes with companies like Nu Skin Enterprises, Inc. and USANA Health Sciences, Inc. in the health and wellness industry.

Herbalife’s Return on Invested Capital (ROIC) is 34.46%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 7.38%. This results in a ROIC to WACC ratio of 4.67, indicating that Herbalife is generating returns well above its cost of capital. This strong ratio suggests efficient capital utilization, making Herbalife a standout performer in its industry.

In comparison, Nu Skin Enterprises, Inc. (NUS) has a ROIC of 0.34% and a WACC of 6.07%, resulting in a ROIC to WACC ratio of 0.056. This indicates that Nu Skin is not generating returns that exceed its cost of capital, highlighting a less efficient use of its investments compared to Herbalife.

Yelp Inc. (YELP) shows a ROIC of 13.01% against a WACC of 8.72%, leading to a ROIC to WACC ratio of 1.49. While Yelp’s ratio is better than Nu Skin’s, it still falls short of Herbalife’s performance. Similarly, USANA Health Sciences, Inc. (USNA) has a ROIC of 4.78% and a WACC of 8.15%, resulting in a ROIC to WACC ratio of 0.59, which is also lower than Herbalife’s.

Deckers Outdoor Corporation (DECK) presents a ROIC of 30.38% and a WACC of 8.67%, achieving a ROIC to WACC ratio of 3.50. Although Deckers shows strong performance, it still does not surpass Herbalife’s efficiency in generating returns. LL Flooring Holdings, Inc. (LL) has a negative ROIC of -44.17% and a WACC of 4.13%, resulting in a ROIC to WACC ratio of -10.69, indicating significant inefficiencies.