Sturm Ruger & Company Inc (RGR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 543,767 | 595,842 | 730,736 | 568,868 | 410,506 |
| Property, plant and equipment | US$ in thousands | 71,534 | 76,853 | 73,631 | 70,733 | 73,914 |
| Fixed asset turnover | 7.60 | 7.75 | 9.92 | 8.04 | 5.55 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $543,767K ÷ $71,534K
= 7.60
The fixed asset turnover ratio for Sturm, Ruger & Co., Inc. has displayed some fluctuations over the past five years, with values of 7.60 in 2023, 7.75 in 2022, 9.92 in 2021, 8.04 in 2020, and 5.55 in 2019.
A higher fixed asset turnover ratio generally indicates that the company is generating more revenue per dollar invested in fixed assets. In this case, the company's fixed asset turnover has been relatively high, reflecting efficient utilization of its fixed assets to generate sales.
The decrease in fixed asset turnover from 2021 to 2022 could be attributed to various factors such as changes in production efficiency, sales volume, or changes in asset base. However, the ratio remained relatively stable overall, suggesting that the company has been able to effectively utilize its fixed assets to generate revenue consistently.
It is important for the company to continue monitoring and managing its fixed asset turnover ratio to ensure that its assets are being utilized efficiently to support revenue generation. Further analysis and comparison with industry benchmarks can provide more insights into the company's operational efficiency and competitiveness in the market.
Peer comparison
Dec 31, 2023